New distance selling single VAT filing figures highlight initial success
The EU Directorate-General for Taxation confirmed new and updated revenues from the EU e-commerce package reforms introduced from 1 July 2021. This included new data on the Import One Stop-Shop regime, plus first numbers from the One Stop-Shop distance selling return.
The figures released on 23 May 2022 covered the second half of 2021, and included:
- €6.8 billion from the new One Stop-Shop return which sellers and marketplaces can use instead of multiple VAT registrations
- over €2 billion in VAT revenues was collected on imports of low value consignments not exceeding €150, a rise since the initial IOSS revenue estimated in March 2022
- Almost €700 million represented new VAT revenue, equating to €1.4 billion annually, generated by the abolition of the VAT exemption that previously applied to imports of low value goods not exceeding €22 and which was highly susceptible to fraud.
- Separately, an estimated additional €270 million in VAT was collected as a direct result of the import OSS’s capacity to counter fraud and VAT losses due to undervaluation.
EU VAT in the Digital Age reforms
|EU VAT in the Digital Age|
|3 reforms to improve efficiency of VAT for all and reduce fraud|
|1. Single VAT registration in the EU; extension of OSS to all B2C and certain B2B||Following the 1 July 2021 introduction of the One Stop-Shop (OSS), can this be extended to cover further cross-border B2C and all / any B2B transactions (e.g. movement of own stock across borders) to reduce the foreign, non-resident VAT registrations and returns burden|
|More details on Single VAT Registration in the EU|
|2. Digital Reporting Requirements; e-invoicing||What options are there to harmonise the digitisation of transaction reporting amongst the member states. The EU is looking at: Continuous Transaction Control (CTC) e-invoicing, live reporting; or Periodic Transaction Controls (PTC) invoice listings. Also if at a country, EU or hybrid-level.|
|Read more about EU Digital Reporting Requirements (DRR)|
|3. VAT treatment of the platform economy||How can EU member states adapt their tax systems to reflect the new role taken on by Electronic Interfaces - platforms and marketplaces which have enabled millions of private individuals to provide services and goods for the first time. How should the VAT Directive be modified to capture the new dynamics created in the gig and sharing economies, including imposing full deemed supplier VAT obligations on platforms as with 2021 e-commerce package for goods.|
|EU VAT Treatment of Platform Economy update|