31 May 2022
The European Union (EU) has released statistics showing that the introduction of the EU e-commerce packages in July last year, has been a success. The figures indicate that:
- €6.8 billion in VAT revenue has been collected from the new One-Stop-Shop (OSS) return. The OSS return is the new mechanism that sellers and marketplaces use to report VAT on distance sales, instead of the multiple VAT registrations they were required to have under the old regime.
- Over €2 billion in VAT revenue was collected using the Import One-Stop-Shop (IOSS) return. The IOSS return is the new mechanism to collect VAT on imports of low-value consignments under the value of €150.
- Almost €700 million in new VAT revenue was collected, equating to €1.4 billion annually, from the scrapping of the VAT exemption on imports of low-value goods not exceeding €22.
It's also estimated that an additional €270 million in VAT was collected as a direct result of the new EU e-commerce package’s capacity to counteract fraud and VAT losses due to undervaluation of goods at import.
If you would like further information regarding how the IOSS and OSS impacts your business or need help registering for these packages, please get in touch for a free consultation.
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