The rise of e-commerce has required the system of value-added tax (VAT) to adapt and ensure that the rules allow for a smooth and fraud-proof transaction between customer and seller. The major overhaul of the VAT rules for e-commerce in 2021 introduced a series of important simplifications for businesses, such as the creation of an import one-stop shop (IOSS). The IOSS allows businesses to declare and remit VAT on all their business-to-consumer (B2C) distance sales of imported goods across the EU (i.e. goods bought online by a customer established in the EU with the goods dispatched from a third country) through one single VAT return,rather than in each country where they make a sale. However, at the moment, the IOSS operates with a threshold, whereby the distance selling of goods with a value above €150 cannot be declared in the IOSS.
Source europarl.europa.eu
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