In July 2021 new VAT system for online shopping came into force, whose main aim was to simplify cross-border e-commerce and introduce greater transparency for EU shoppers when it comes to pricing and consumer choice. In addition to this, these new rules were put in place to combat VAT frauds and to ensure a more level playing field for all businesses.
First results of the new VAT rules in the EU
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Author: Kristina Dosen
Category:
Fiscal subject related
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666
Content accuracy validation date:
15.04.2022
Content accuracy validation time:
08:15h
After 6 months after the implementation of these new rules, European Commission (EC) issued a statement regarding the first result. Preliminary results showed that the EU Member States collected €1.9 billion in VAT revenues between July and December 2021. It is necessary to have in mind that these figures relate only to one facet of the new rules, that is only to those related to imported online shopping parcels valued at less than €150.
Furthermore, EC reported that around 8.000 traders, including sellers and deemed suppliers marketplaces, have registered to Import One-Stop-Shop (IOSS) scheme through which they can take care of VAT on all their online sales into the EU. In total, EU customs handled around 500 million items covered by the new simplified dataset in the six months from July 2021, with 94% of them supplied by IOSS registered traders.