EU Economic and Financial Affairs Council Agrees on Directive for New VAT Rules Making Foreign Traders and Platforms Liable for VAT on Imports

• On 13 May 2025, the EU Economic and Financial Affairs Council agreed on a directive to enhance VAT collection for imported goods, making foreign sellers and platforms liable for import VAT to promote broader use of the IOSS system.

• The directive simplifies VAT obligations for distance sales of imports by encouraging suppliers to handle VAT through the Import One-Stop Shop. Although agreed upon by member states, the directive still requires formal adoption to take effect.

Source: Orbitax

 

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.