EU VAT Reform: Suppliers and Platforms Liable for Low-Value Imports from 2028

EU Finance Ministers agreed on a draft directive to amend VAT rules for low-value imports.
Responsibility for import VAT and VAT on distance sales will shift to suppliers or online platforms.
The current system of postal and courier operators collecting import VAT will be abolished.
The directive encourages using the Import One Stop Shop (IOSS) for VAT exemption and simplified reporting.
Suppliers or platforms not using IOSS must register for VAT in each Member State where goods are delivered.
Non-EU businesses must appoint a fiscal representative unless a mutual assistance agreement exists.
Member States can hold customs representatives liable for import VAT if not appointed as fiscal representatives.
Goods may not be released if import VAT obligations are unmet, with consumers potentially paying outstanding VAT.
The simplified arrangement for postal and courier operators will end.
Member States must implement the directive by 1 July 2028.
Businesses should reassess their VAT compliance and logistics strategies.

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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.