Expanding into the EU? Understand How ViDA and IOSS Affect Your VAT Duties

The EU’s ViDA reforms, effective 1 July 2028, overhaul VAT rules for non-EU sellers, ending the special arrangement and requiring VAT to be paid at the point of sale.
IOSS lets non-EU sellers simplify VAT on consignments under €150. From 2028, IOSS becomes mandatory or sellers must register in each EU country where goods are delivered.
Non-EU sellers must appoint EU tax representatives if from non-cooperating countries, and customs agents may now share VAT liability under new joint and several liability rules.
In force since 2023, DAC7 mandates platforms like Amazon and Airbnb to report seller identity, tax residency, and earnings to EU tax authorities to combat tax evasion and fraud.
Platforms must now monitor seller compliance, match declared sales with import data, and face liability if misreporting occurs, tightening VAT enforcement for both EU and non-EU digital sellers.