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EU Splits Over Extending IOSS Threshold Amid Fraud Concerns

  • EU reforms to the Import One Stop Shop (IOSS) are stalled due to disagreements over raising or removing the current €150 low-value goods threshold.
  • The Commission wants IOSS to cover higher-value imports as part of broader customs reforms, while some member states want a compromise cap instead.
  • Austria and Germany warn that expanding IOSS too far could enable VAT fraud through shell entities and unpaid import taxes.
  • Some governments suggest a limit around €5,000, but the Commission says any new cap could encourage shipment splitting and undermine the reform.

Source: vatcalc.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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