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.

Source: fiscalsolutions.co.uk

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