International Ecommerce Legal Frameworks

🇪🇺 The European Commission recently published 𝟐𝟎𝟐𝟒 𝐝𝐚𝐭𝐚 𝐨𝐧 𝐭𝐡𝐞 𝐎𝐧𝐞-𝐒𝐭𝐨𝐩 𝐒𝐡𝐨𝐩 (𝐎𝐒𝐒) 𝐕𝐀𝐓 𝐬𝐜𝐡𝐞𝐦𝐞𝐬 — key frameworks enabling simplified tax compliance for cross-border e-commerce and digital services in the EU. There are three OSS variants, each serving a different use case: 🔹 𝐎𝐒𝐒 𝐔𝐧𝐢𝐨𝐧: For EU-based businesses (and non-EU sellers selling goods across EU Member States). 𝟏𝟓𝟑,𝟓𝟓𝟎 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 were registered in 2024 (+16% increase vs. end of 2023). 🔹 𝐎𝐒𝐒 𝐧𝐨𝐧-𝐔𝐧𝐢𝐨𝐧: For non-EU businesses providing digital services to EU consumers. 𝟓,𝟔𝟐𝟖 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 registered (+6% YoY). 🔹 𝐈𝐦𝐩𝐨𝐫𝐭 𝐎𝐒𝐒: For both EU and non-EU sellers of low-value goods shipped into the EU. 𝟏𝟐,𝟕𝟗𝟗 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 registered (+6% YoY). Use of intermediaries (required for sellers outside the EU, Norway and the UK to use IOSS) also rose: 𝟏,𝟑𝟒𝟗 intermediaries were registered (+10% YoY). 💶 In total, these schemes collected €𝟑𝟑.𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 in VAT in 2024. The IOSS experienced substantial growth, with the total amount of VAT declared increasing by 𝟔𝟐%. This sharp rise in IOSS collections highlights the continued growth in low-value imports into the EU. https://lnkd.in/dWUEEiBi

European Parliamentary Research Service: Problems presented by #third-#country #eCommerce Online commerce is a defining feature of the modern world. It opens up opportunities for consumers and businesses alike. For consumers, it can mean a wider choice of goods and services at cheaper prices. For business, it offers new ways to reach larger markets. The borderless nature of online commerce means that, today, such opportunities within the EU are also open to businesses from elsewhere, and this phenomenon has been on the rise in recent years. Many consumers are familiar now with the advantages of being able to purchase goods at low prices from all corners of the globe. However, along with these opportunities come risks. Goods imported from outside the EU do not always conform to EU product standards or comply with EU consumer law. It can be extremely challenging for customs and other public authorities to check the increasingly large numbers of imports of often very low value. These challenges have been identified by a wide variety of stakeholders across the EU. The issue is on the radar of various actors in the EU institutions, with the promise of action already from the new Commission, concerns expressed by Member States and attention in Parliament. The consensus seems to be that the time has come for action to be taken. The issues are technically challenging. They sit at the centre of a web of legislation, some of which has only recently been adopted. To get to grips with the problem, policymakers and lawmakers will need to examine that legal framework systematically, and work out what gaps have to be filled, and how best to fill them. They will also need to bear in mind that similar concerns have already been raised in other jurisdictions, and some solutions proposed. The way in which these issues are addressed will put wider trading and diplomatic relations between large global actors to the test.