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In May 2025, ECOFIN agreed on a draft directive revising VAT rules for distance sales of imported goods, aiming to promote the use of the Import One Stop Shop (IOSS) system.
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The IOSS allows sellers to declare and pay VAT on low-value imports (€150 or less) sent from outside the EU directly to EU consumers via a single electronic portal.
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New rules shift the import VAT payment responsibility from consumers to sellers or online marketplaces, requiring VAT registration in each EU country if IOSS is not used.
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If sellers fail to comply, customers may still be liable for import VAT; the European Parliament will review the draft before formal adoption, expected by July 2028.
Source: fiscalsolutions.co.uk
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