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Black Friday : the future of E-commerce & EU Customs Reform

In occasion of the annual Black Friday Sales, the activity of the EU retailers is significantly increasing.

The online sales representing ourdays an important part of the whole EU retail sector, they are expected to reach around 30% of retail sales by 2030.

According to the 2023 European E-commerce Report jointly published in September 2023 by Ecommerce Europe and EuroCommerce, the European B2C e-commerce turnover on the European Continent (37 countries) increased of 6% between 2021 & 2022, reaching €899 billion in 2022 and estimated at €975 billion by the end of 2023.

This growth is also reflected in the increasing tax collection by the EU-Member States. In 2022, the e-commerce has generated a high tax revenue in terms of the VAT amounts declared through the OSS (EU and non-EU) & IOSS mechanisms. Based on the E-commerce VAT statistics presented during the 34th VAT Expert Group meeting in Brussels, such as published on November 15th, around €20 billion of VAT was declared via the three schemes (EUR 15 billion in the Union scheme, EUR 2 billion in the non-Union scheme and EUR 2.5 billion in the Import scheme) in 2022. The increasing number of the online-traders getting registered for these schemes implemented through the 2021 VAT e-commerce package proves the popularity of the simplification measures, encouraging the EU-Authorities for further developments in VAT & Customs procedures.

In line with the above, the final proposal COM(2023)262, completed by the Commission’s Group on the future of VAT on Novembre 9th, aims to simplify the VAT obligations of e-sellers importing goods into the EU, in frame of the Customs Reform Package adopted on 17 May 2023.

As a reminder, the EU Customs Reform Package includes 3 pillars :

  • EU Customs Data Hub to digitalise the procedures
  • New EU Customs Authority coordinating checks & inspections of  Member States
  • Alignment  between Customs and VAT rules for importation of e-commerce goods

The main measures of the 3rd pillar also reflect some VAT proposals of the VIDA reform :

  • Introducing the concept of deemed importer for the IOSS registered traders
  • Removing the EUR 150 customs de minimis threshold on imported low-value goods
  • Enabling a single VAT registration for IOSS salers of imported goods above 150 EUR
  • Simplifying customs tariffs on e-commerce goods with a voluntary 4-tier bucketing system

These measures will have important simplifications both for the e-sellers and for the consumers :

  • Collection of Customs Duties & VAT upon an e-order
  • Simplification of the EU-distance sales declaration through the single VAT registration number
  • Extension of  IOSS for over 150€ value goods which will be made mandatory for the platforms

Once these proposals are agreed and implemented within the EU, the e-commerce boost will be ensured beyond 2030.

BtoBnice will be happy to ensure the VAT compliance of your actual & future e-commerce activity:

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