ECOFIN Approves Draft Directive for 2028 IOSS Expansion Proposal

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.
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.
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.
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.