- EU finance ministers agreed on a new VAT approach for e-commerce imports.
- The agreement aims to enhance the Import One-Stop Shop (IOSS) for VAT declaration and payment.
- It reduces administrative burdens and improves the fight against VAT fraud.
- The EU encourages wider adoption of IOSS to simplify small package processing and ensure VAT collection.
- Suppliers selling goods up to €150 will be responsible for import VAT and encouraged to use IOSS.
- Non-participating suppliers risk complex and costly VAT registrations across EU states.
- A fallback procedure allows customers to pay VAT directly if suppliers do not comply.
- The directive streamlines VAT processes and supports broader customs reforms.
- In 2024, an estimated 4.6 billion packages entered the EU from non-EU countries.
- In 2023, VAT declarations through IOSS reached over €26.3 billion, a 35% increase from the previous year.
Source: taxation-customs.ec.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.
