The European Union collected more than €33 billion in VAT revenue during 2024 through its e-commerce VAT systems, according to new data published this week, underscoring the impact of its 2021 VAT reform package.

The One Stop Shop (OSS) and Import One Stop Shop (IOSS) mechanisms, which were introduced to simplify cross-border VAT compliance, allow businesses to declare and remit VAT for cross-border sales of goods and services within the EU, as well as for low-value imports, through a single registration in any one Member State.

According to the European Commission, the results show that the 2021 reforms are delivering on their promise to simplify compliance, support businesses, and ensure fairer taxation across the EU.

“These latest figures are a clear sign that the 2021 reforms are delivering on their promise of simplifying compliance, supporting businesses, and ensuring fairer taxation,” the commission said in a press release.

The Commission explained that OSS and IOSS help companies reduce red tape and cut compliance costs while ensuring VAT is collected more efficiently and transparently.

“Today’s figures confirm that businesses continue to make full use of these simplifications, which reduce bureaucracy and compliance costs while ensuring the collection of VAT,” it added.

The OSS and IOSS systems are part of a broader push by the EU to modernise VAT rules, combat fraud, and adapt the tax system to the digital age.

The strong uptake by businesses and the substantial revenue generated in 2024 suggest that the reforms are working as intended and have become integral to the bloc’s approach to digital commerce and fair taxation.