Council formally adopts new rules simplifying tax collection for imports

Liability Shift to Suppliers: The Council has adopted on July 18, 2025, new VAT rules that make suppliers outside the EU liable for VAT on imported goods, rather than placing this burden on EU consumers, which aims to enhance VAT collection and compliance.
Encouragement of the IOSS: The directive promotes the use of the Import One-Stop-Shop (IOSS) for VAT reporting and collection, allowing non-EU traders to register in just one member state, simplifying VAT declaration when selling goods across the EU.
Implementation Timeline: The new VAT rules will be published in the Official Journal of the EU and come into effect on July 1, 2028, streamlining VAT payments by allowing upfront collection at the point of sale instead of at the border.