European Commission
Commission publishes report on application of VAT e-commerce package for 2024
Member States collected over EUR 33 billion in VAT via the EU’s e-commerce systems in 2024, according to a European Commission (EC) report published on 23 July.
Through a single registration in one Member State, the One Stop Shop (OSS) and Import One Stop Shop (IOSS) allow businesses to declare and remit VAT for cross-border sales of goods and services in the EU, as well as for imports of low-value goods. According to the EC, companies are leveraging these simplifications to cut red tape and compliance costs, while ensuring the collection of VAT.
In 2024, over EUR 24 billion was declared via the Union OSS, EUR 2.8 billion via the non-Union OSS, and EUR 6.3 billion through the Import OSS, representing a 26% increase compared to 2023. Since the reforms were introduced in mid-2021, Member States have collected nearly EUR 88 billion in VAT under the OSS and IOSS schemes.
New public consultation on VAT rules for travel and tourism
The EC is inviting stakeholder feedback for a potential reform of the EU’s special VAT scheme for travel agents and VAT rules on passenger transport. The deadline for input is 16 October.
Accountancy Europe is currently preparing a response to the consultation.
Upcoming consultation on circular economy includes tax issues
The EC plans to propose a Circular Economy Act at the end of 2026. The initiative aims to enhance the EU’s economic security and competitiveness, while promoting more sustainable production, circular economy business models and decarbonisation. Stakeholders can provide input until 6 November.
The Act is expected to:
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facilitate the free movement of ‘circular’ products, secondary raw materials and waste
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boost the supply of high-quality recycled materials and stimulate demand within the EU
The consultation also covers tax elements, such as tax incentives for boosting the circular economy, or eliminating VAT embedded in the value of recycled goods.
CBAM update: Commission seeks input on three new documents
The EC published three Calls for Evidence documents on the Carbon Border Adjustment Mechanism (CBAM) on 28 August. Stakeholders are invited to share their feedback on the documents until 25 September.
The Calls for Evidence documents are available from these links:
European News
Denmark to abolish VAT on books in effort to get more people reading
Denmark is to stop charging VAT on books in an attempt to get more people reading. At 25%, the country’s tax rate on books is the highest in the world, a policy the government believes is contributing to a growing “reading crisis”.
The culture minister, Jakob Engel-Schmidt, announced on 20 August that the government will propose the removal of this tax. The move is expected to cost 330 million kroner (EUR 44 million) a year.
