- The EU is seeking agreement to abolish the €150 intrinsic value cap for the Import One Stop Shop (IOSS), allowing the VAT simplification scheme to cover higher-value imported e-commerce goods.
- The Irish EU Council Presidency wants political agreement at the 9 November ECOFIN meeting, after technical discussions resumed over the summer.
- IOSS lets non-EU sellers and marketplaces charge VAT at checkout and report it via one monthly EU VAT return; removing the cap would align e-commerce import VAT treatment with wider customs reform.
- Some member states are resisting due to fraud concerns, so talks are focusing on stronger safeguards, including tighter controls on IOSS intermediaries and an EU digital verification mechanism for eligible users.
- The wider customs framework is already changing: the old €150 customs duty exemption ended from 1 July 2026, replaced temporarily by a €3 duty, and broader IOSS reforms are set to apply from 1 July 2028.
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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