In July 2025, the European Commission published its report on the implementation of the e-commerce VAT package in 2024. It revealed that over €33 billion in VAT was declared through the OSS and IOSS schemes—a 26% increase compared to the previous year. These figures highlight the importance of OSS/IOSS as a compliance tool for e-commerce businesses selling within the EU, via platforms such as Amazon, Bol, Shopify, or WooCommerce.
What are OSS and IOSS?
The One Stop Shop (OSS) and Import One Stop Shop (IOSS) were introduced in July 2021 to simplify VAT filing for cross-border e-commerce. These schemes allow companies to submit a single VAT return for all B2C sales across EU countries using one central VAT registration.
Union OSS: for intra-EU B2C sales
Non-Union OSS: for non-EU businesses selling within the EU
Import OSS (IOSS): for goods imported from third countries valued under €150
These systems aim to reduce administrative burden and ensure fair competition in the EU market.
Record Figures in 2024
In 2024, total VAT declared through OSS/IOSS amounted to €33.1 billion:
€24 billion via Union OSS
€2.8 billion via Non-Union OSS
€6.3 billion via Import OSS (IOSS)
This marks a 26% increase compared to 2023 (€26.3 billion). Since their introduction in 2021, nearly €88 billion in VAT has been declared via these schemes. The growth underscores their practical value and widespread adoption.
Registrations: Still Untapped Potential?
According to the European Commission, over 170,000 businesses were registered for OSS/IOSS by the end of 2024. Union OSS grew by 16% to over 153,000 registrations, while IOSS and Non-Union OSS also saw moderate increases.
However, Joke from Staxxer adds a critical perspective:
“When you compare that to the total number of businesses active in e-commerce and cross-border sales, 170,000 is relatively low. We suspect many entrepreneurs are still not using OSS, even though they could—or should. There’s a lot of confusion around when OSS is mandatory and when it’s just a helpful option.”
This lack of awareness can lead to unnecessary complexity or risk in VAT processing. Especially for sellers active across multiple channels or EU countries, it’s wise to assess whether OSS fits their operational model. The benefits of a single VAT return and avoiding multiple EU VAT registrations are substantial. And with the EU’s ViDA program introducing stricter digital VAT enforcement, timely and accurate filing becomes even more critical.
Why This Matters for E-Commerce
For sellers on Amazon, Bol, Shopify, or WooCommerce, cross-border sales are often the norm. As soon as you’re selling to consumers in multiple EU countries, you face VAT obligations in each of them. OSS simplifies this by centralising the process.
Without OSS, you’re required to register in each country individually, with separate returns, deadlines, and rules. This increases the risk of errors, late filings, and penalties. OSS makes the process more manageable, ensuring compliance without unnecessary overhead.
Customers also expect a smooth checkout process without unexpected VAT charges or customs delays. OSS and IOSS help deliver that, especially for sub-€150 imports under IOSS.
What Can You Do as a Seller?
If you’re selling to customers in other EU countries, it’s worth evaluating whether OSS is applicable to your situation. Even if it’s not strictly mandatory, it might be a practical choice that significantly simplifies your administration. This is particularly true for those selling via Amazon FBA or storing inventory in other EU countries to offer faster delivery.
The same applies to Shopify and WooCommerce users. Many webshops ship internationally from day one. You don’t want to find out too late that you’ve exceeded thresholds or missed VAT filings in multiple countries.
With the upcoming EU ViDA initiative, which will digitise and tighten VAT enforcement, getting your compliance processes in order is more urgent than ever.
Conclusion
The record OSS and IOSS revenues in 2024 underscore the growing relevance of these systems in modern e-commerce. Still, adoption appears to lag behind the number of businesses that could benefit. Sellers operating across the EU should consider whether OSS or IOSS suits their needs—not just to avoid risks, but to create room for growth without being bogged down by admin.
