- The proposal aims to expand the range of supplies covered by the IOSS, Special Arrangements, and deemed supplier regime by removing the EUR 150 threshold.
- The IOSS could be used to declare and remit VAT on all distance sales of imported goods into the EU, excluding products subject to excise duties.
- The proposal will reduce compliance costs for businesses and create a level playing field for online sellers.
- The extended IOSS will give authorities more time and resources to focus on fighting fraud and providing compliance assistance.
- The reform will combat abuse of the duty exemption by preventing fraudsters from undervaluing goods.
- The proposal builds on the success of the VAT e-commerce package and the VAT in Digital Age proposal.
- Compliance efforts will be focused on a smaller number of large players in the market.
- The proposal supports the principle of a single VAT registration in the EU.
- Taxable persons making distance sales of imported goods via marketplaces will no longer have to register for VAT if the intrinsic value of the consignment is above EUR 150.
- The marketplace will act as the deemed supplier and declare and remit the VAT due on those supplies.
Source: europarl.europa.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
