- The EU Council agreed on new rules for distance sales of imported goods and VAT to promote the IOSS scheme.
- IOSS allows sellers to report and pay VAT for low-value goods imported into the EU through one EU country.
- IOSS simplifies VAT processes for online sellers and exempts goods from border VAT collection.
- Currently, IOSS is optional and sellers can designate buyers to pay import VAT, which is not ideal for customer experience.
- The EU aims to increase VAT compliance and revenue by encouraging IOSS use.
- Proposed changes from July 2028 will affect traders not registered in the IOSS scheme.
Source: essentiaglobalservices.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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