- EU VAT Directive amendment aims to shift VAT liability to suppliers or platforms
- Objective is to encourage businesses to adopt IOSS
- ECOFIN agreed on Directive 2023/0158 to reform VAT collection on low-value imported goods
- New rules effective July 1, 2028
- VAT responsibility shifts from postal operators to sellers and platforms
- Special arrangements for import VAT collection will be abolished
- Businesses not using IOSS must collect and pay VAT in the customer’s EU country
- IOSS simplifies VAT compliance with a single VAT return in one Member State
- Reform encourages IOSS adoption for consistent VAT collection
- Commission to introduce measures to link shipments with IOSS numbers to combat VAT fraud
- Reform impacts businesses by making sellers and platforms primary VAT payers
- Non-compliant shipments may face delays and consumer involvement in VAT payment
- Businesses have three years to prepare for changes, with early planning advised
Source: marosavat.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.
