EU Council Approves Directive Making Foreign Traders Liable for Import VAT Compliance

• EU Economic and Financial Affairs Council agreed on a draft directive for new VAT rules on imported goods
• Suppliers will be liable for VAT on imports, encouraging use of the VAT import one-stop-shop (IOSS)
• The directive requires formal adoption and aims to improve VAT collection and compliance
• Foreign traders or platforms will be liable for import VAT in the destination member state
• IOSS simplifies VAT declaration and payment, requiring registration in only one member state
• The directive is part of ongoing negotiations on the Union Customs Code reform
• The draft law requires unanimity within the Council and consultation with the European Parliament
• The directive is linked to a customs reform package published by the European Commission in May 2023
• Original provisions on customs exemptions were set aside for further discussion
• The directive focuses on encouraging the use of the IOSS for VAT compliance

Source: regfollower.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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