EU Shifts VAT Liability to Non-EU Sellers, Platforms to Boost IOSS Usage

• EU shifts VAT liability on imported distance sales to non-EU sellers and platforms
• Change aims to promote use of VAT Import One-Stop-Shop IOSS
• VAT registration can be done in a single EU state for sales across the EU
• Amendments to VAT directive adopted on 18 July 2025
• VAT liability shifts from EU consumers to non-EU suppliers or platforms
• Directive improves VAT collection on imported goods
• Suppliers outside EU encouraged to use IOSS for VAT reporting and collection
• IOSS simplifies VAT declaration and payment for importers
• Non-EU traders or platforms liable for VAT in member state of goods’ final destination
• IOSS enables VAT payments upfront, protecting tax revenues and increasing compliance
• Directive to be published in Official Journal of the EU and effective from 1 July 2028
• New rules amend directive 2006/112/EC known as the VAT directive
• VAT is a consumption tax collected by businesses and remitted to tax authorities

Source: regfollower.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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