Global Daily Tax News, EU Welcomes Success Of 2021 E-Commerce VAT Reforms, (Sep 10, 2026)

The EU has released a new report, based on data from Member States, that shows that businesses continue to make increasing use of the simplified VAT rules for online sales.

Five years after the EU's VAT e-commerce rules entered into force, the latest figures show continued growth in VAT declared through the One Stop Shop (OSS) and the Import One Stop Shop (IOSS) schemes.

Through a single registration in one Member State, the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes allow businesses to declare and remit VAT for cross-border sales of goods and services within the EU, as well as for imports of low-value goods.

The VAT e-commerce package, which entered into force on July 1, 2021, marked a major step in modernizing the EU VAT framework. Since then, Member States have collected more than EUR125bn in VAT revenue through the EU's VAT e-commerce schemes.

The report sets out details of the total number of registrations in all three One-Stop Shop (OSS) schemes, namely the Union OSS, the non-Union OSS, and the Import OSS, as of December 31, 2025. It also provides details on the total amount of VAT declared in each of these schemes in 2025. In addition, it describes how these registrations and declaration figures have evolved since the introduction of the VAT e-commerce rules in July 2021.

According to the report, in 2025 alone, more than EUR38bn in VAT revenue was collected, an increase of 17 percent compared with the previous year. The number of businesses using the EU's simplified VAT schemes has also continued to grow. By the end of 2025, more than 193,000 businesses have registered to account for VAT on online sales through the schemes.

The EU said, following the adoption of the VAT in the Digital Age (ViDA) package in 2025, its phased implementation over the coming years is expected to build further on the success of the e-commerce VAT reforms. "By expanding the scope of the OSS to cover more business-to-consumer transactions and introducing a new special scheme for the transfers of own goods, the ViDA package is likely to lead to even greater uptake of the OSS schemes, moving towards a single VAT registration in the EU," the EU said.