Draft Report on Amending VAT Rules for Distance Sales of Imported Goods in EU.

• European Parliament consulted for the second time on VAT rules for distance sales of imported goods
• Original proposal to make IOSS mandatory was rejected by Member States
• Alternative proposal to hold suppliers and platforms liable for import VAT if not using IOSS was not mature enough
• Commission proposed reforms to Union Customs Code, including abolishing the 150 euro exemption threshold
• Provisions to incentivize IOSS use were added to the Customs Code reform proposals
• Polish Presidency suggested separating IOSS provisions from customs proposals, which was accepted
• Council agreed to incorporate IOSS incentives into the VAT Directive, making suppliers and platforms liable for import VAT if not using IOSS
• European Parliament emphasized transparency and security in IOSS operations
• Called for a unified approach between IOSS and customs legislation to avoid inconsistencies and double taxation
• Highlighted the need to reduce administrative burden for SMEs
• Suggested assessing pros and cons of making IOSS mandatory
• Rapporteur recommends a simplified procedure without amendments for re-consultation

Source: europarl.europa.eu

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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