EU finalises new VAT rules for imports from non-EU sellers

The Council of the European Union has formally adopted a directive amending VAT rules for distance sales of imported goods, aiming to strengthen tax compliance and shift the burden of VAT collection from consumers to suppliers and online platforms.

Effective from July 1, 2028, the new rules will require non-EU sellers and platforms to be liable for VAT in the EU member state where the goods are delivered. This supersedes the current system where EU consumers are typically responsible for VAT on imports, Council of the EU said in a release.

To streamline compliance, the directive promotes the use of the Import One-Stop Shop (IOSS)—a simplified VAT registration and payment system that allows businesses to register in one EU country while selling across the bloc. By enabling VAT to be collected at the point of sale rather than at the border, the IOSS supports improved revenue protection for member states and boosts overall VAT compliance.

The directive amends the original VAT Directive 2006/112/EC and will be published in the Official Journal of the EU before entering into force twenty days later.

ALCHEMPro News Desk (HU)