EU Proposes Shifting VAT Liabilities to Suppliers and Marketplaces for Low Value Consignments

• ECOFIN agreed on a proposal to change VAT rules for Low Value Consignments from outside the EU
• Suppliers and marketplaces will be liable for VAT on imports and sales of these consignments
• The current postal and courier VAT arrangement will be abolished
• The proposal encourages the use of the Import One Stop Shop (IOSS)
• Proposed changes are set to apply from 1 July 2028
• European Parliament consultation and formal approval by the Council of the EU are pending
• Suppliers and marketplaces not using IOSS will face VAT obligations in all EU destination countries
• Using IOSS exempts import VAT and requires VAT payment on sales in the destination country
• Non-EU suppliers must appoint a tax representative for EU VAT compliance
• Goods will not be released if import VAT obligations are not met, with a fallback option for consumers to pay import VAT
• Customs representatives may be held jointly liable for import VAT in case of irregularities
• The special arrangement for customs declarants importing on behalf of consumers will be abolished

Source: loyensloeff.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.

---

---