VAT revenues from the EU’s e-commerce systems brought €257.9 million into Cyprus’ coffers in 2024, according to tax commissioner Sotiris Markides.

Through the One Stop Shop (OSS) and Import One Stop Shop (IOSS), businesses can declare and pay VAT on cross-border sales within the EU, as well as on low-value imports from outside the bloc, with just one registration in a single member country.

Speaking to local newspaper Politis, Markides said that a Cyprus-registered business selling goods or services to consumers in other EU countries can simply register on the local OSS platform, charge the VAT rate of the consumer’s country, declare the total owed on a quarterly or monthly basis, and make a single payment. Cyprus then forwards each country its share.

Last year, €217.9 million was declared through the Union Scheme, €36.9 million through the Non-Union Scheme and €3.1 million via the Import Scheme.

The Union Scheme covers EU-based sellers, as well as non-EU sellers making intra-EU distance sales.

The Non-Union Scheme is for non-EU firms providing services to EU consumers, while the Import Scheme applies to goods worth less than €150 coming from outside the EU.

The rules, in place since July 2021, replaced the smaller MOSS system with the wider OSS, introduced the IOSS for low-value imports, and made certain online marketplaces “deemed suppliers” responsible for VAT collection.

Across the EU, according to the European Commission more than €33 billion was collected through these systems in 2024, proof, it added, that the reforms are simplifying compliance, cutting red tape and ensuring fairer taxation.