On 13 May 2025, the Council announced that it has reached an agreement on the VAT rules for distance sales of imported good and import VAT.
In the future, foreign traders or platforms will be made liable for import VAT and VAT on distance sales of imported goods in the Member State of the final destination of the goods. The Council expects these new rules to encourage the use of the Import One-Stop-Shop (IOSS), which serves as a single point of contact for importers of goods from third countries into the European Union. Foreign traders or platforms that decide not to use the IOSS will have to be registered in each Member State.
The IOSS system allows VAT to be paid in advance (when the consumer buys the goods) rather than at the border. In this way, it protects Member States' tax revenues and strengthens compliance with VAT rules on imports. It also shifts the burden of VAT collection from purchasers to platforms, an objective which the Council also hopes to achieve for customs duties as part of its reform of the Union's Customs Code.
Under the applicable special legislative procedure, the European Parliament will be consulted on the agreed text and asked to deliver its opinion. Then, the text will need to be formally and unanimously adopted by the Council before being published in the EU’s Official Journal and entering into force.
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