EU Collected More Than €125 Billion Through E-Commerce VAT Systems

European Union member states collected more than €125 billion through dedicated e-commerce VAT systems from July 1, 2021, through December 31, 2025, the European Commission said September 3, 2026. More than €38 billion was collected in 2025 alone, an increase of 17% from 2024.

The figures show how the EU is moving tax collection closer to the online transaction as cross-border shopping expands. They also arrive as the bloc adds customs charges for low-value imports and moves toward assigning more compliance responsibility to e-commerce platforms.

What the VAT figures show

The Commission said more than 193,000 businesses were registered in the EU’s e-commerce VAT schemes by December 31, 2025. The systems include the One Stop Shop, or OSS, which allows businesses to declare and remit VAT on eligible cross-border sales through a single registration, and the Import One Stop Shop, or IOSS, for imported low-value goods.

The reported €125 billion is VAT collected through those schemes. It is not a measure of total online sales, total EU tax revenue or customs revenue. The figures are based on reporting by EU member states and are presented by the Commission as an assessment of the systems’ performance.

Why online demand matters

Eurostat reported that 78% of EU internet users aged 16 to 74 bought or ordered goods or services online in 2025. That was up from 62% in 2015.

The measure covers online buying by surveyed internet users and does not mean that all purchases were cross-border transactions. It does, however, show the scale of the consumer market that tax and customs authorities are trying to monitor.

Low-value imports now face a separate customs duty

Since July 1, 2026, covered distance sales of imported goods in consignments with an intrinsic value of €150 or less have been subject to a temporary €3 customs duty under the EU’s new rules. The European Commission says the duty is separate from VAT and is scheduled to apply through July 1, 2028, when the EU Customs Data Hub is scheduled to launch.

The €3 amount is not necessarily charged once on every order. The Commission says it is applied per declared item, with the practical amount affected by how goods are grouped and classified on the relevant customs declaration. The duty applies regardless of whether VAT is handled through IOSS, the special arrangements for low-value imports or the standard import process.

Platforms would carry more responsibility

On September 3, the Council of the European Union gave its final approval to a customs-reform text that would treat non-EU e-commerce platforms as the importer when they sell goods into the EU. Under the text, platforms would be responsible for customs formalities and duty payments rather than leaving those obligations primarily to the final consumer.

The reform also includes penalties for operators that fail to meet customs obligations. In the most serious cases, fines could reach 6% of a company’s annual import value from the preceding year, alongside possible removal of certain customs privileges and restrictions on access to online platforms.

The Council said an EU-wide handling fee for small parcels would be introduced by November 1, 2026. The fee is separate from both VAT and the €3 customs duty, and its level had not yet been set in the Council’s September 3 release.

What shoppers and sellers may notice

Consumers may see taxes, customs charges or handling costs displayed at checkout or reflected in prices and delivery charges. Sellers and platforms may instead absorb some costs, change fulfillment arrangements or combine shipments. The EU measures do not establish one uniform retail-price increase for every online order.

For sellers, the practical change is a larger compliance burden. Product information, VAT treatment, customs classification and importer responsibilities must be coordinated across marketplaces, logistics providers and customs systems.

The next important milestone is November 1, 2026, when the planned small-parcel handling fee is scheduled to begin. The broader customs reform was still awaiting European Parliament approval, signature and publication in the EU’s Official Journal as of September 3. Shoppers and businesses should therefore distinguish between measures already in force, measures approved by the Council but not yet fully enacted, and fees whose final level had not yet been announced.

Sources

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