- EU updates VAT framework for e-commerce imports and distance sales from non-EU countries
- Changes aim to improve Import One-Stop Shop system efficiency
- Simplifies VAT declaration and payment process to reduce red tape
- Encourages broader adoption of IOSS for low-value goods under 150 euros
- More sellers accountable for charging and remitting import VAT
- IOSS registration remains optional but opting out may lead to complex VAT requirements
- Backup mechanism allows customers to pay VAT directly for non-compliance cases
- Part of efforts to modernize EU customs and create efficient trading environment
- Reinforces IOSS use to streamline parcel processing and ensure VAT collection
- In 2024, EU received 4.6 billion parcels from outside, 12 million per day
- VAT collected through IOSS exceeded 26.3 billion euros in 2023, a 35 percent increase from previous year
Source: tra.org
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.
