ECOFIN Agrees on New VAT Rules Making Sellers Responsible for Import Tax Payment

• ECOFIN agreed on rules making sellers responsible for import VAT payment instead of the final consumer.
• The directive aims to modernize the EU VAT system for efficiency and fraud resistance.
• Sellers or platforms will pay import VAT if not included in the price for goods from third countries.
• Previously, the final consumer usually paid the import VAT.
• The new model may discourage sellers from registering for VAT in each EU country, promoting the use of the IOSS system.
• IOSS allows VAT collection at the point of sale for goods up to 150 EUR, with registration in one EU country.
• The directive changes will take effect on July 1, 2028.

Source: finmin.lrv.lt

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.