- Directive Agreement Reached: The Council has agreed on a general approach to a directive aimed at simplifying VAT collection for distance sales of imported goods. This directive intends to make suppliers responsible for VAT paid on imports, thereby promoting the use of the Import One-Stop-Shop (IOSS) system.
- Benefits of the IOSS: By making foreign traders and platforms liable for VAT on imported goods in the destination member state, the IOSS simplifies VAT declaration and payment, allowing registration in just one EU country. This upfront VAT payment mechanism enhances compliance and protects member states’ tax revenues, shifting the VAT collection burden from consumers to platforms.
- Next Steps for Implementation: The directive requires unanimous agreement within the Council and will involve consultation with the European Parliament. Following approval, it will be formally adopted and published in the EU’s Official Journal before coming into effect, as part of broader negotiations on customs reform.
Source consilium.europa.eu
