- The ECOFIN report highlights key VAT-related developments and progress made during the Danish Presidency, including reforms to the Energy and Tobacco Taxation Directives and the adoption of the Import One-Stop Shop (IOSS) Directive.
- The IOSS Directive, adopted on July 18, 2025, aims to improve VAT collection for cross-border e-commerce by encouraging greater use of the IOSS scheme and removing the EUR 150 import threshold.
- The reforms extend VAT and customs rules to cover distance sales from customs warehouses and seek to align VAT and customs procedures, reducing under-declaration and competitive distortions.
- Some delegations raised concerns about the scalability of the IOSS framework and potential fraud risks, especially with higher-value goods.
- The Council also adopted the VAT in the Digital Age (ViDA) package, modernizing VAT rules for digital transactions and enhancing administrative cooperation and digital enforcement.
Source: vatabout.com
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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