- The Council agreed on a directive to simplify VAT collection for imports.
- The directive aims to improve VAT collection by making suppliers liable for VAT on imports.
- It encourages the use of the VAT import one-stop-shop (IOSS).
- The IOSS benefits member states’ finances and aids in Union Customs Code reform negotiations.
- Foreign traders or platforms will be liable for import VAT in the destination member state.
- The IOSS simplifies VAT declaration and payment for goods imported into the EU.
- VAT is paid upfront, protecting tax revenues and increasing compliance.
- The directive requires unanimity in the Council and consultation with the European Parliament.
- The directive is part of a customs reform package published by the European Commission.
Source: eaccny.com
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.
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