EU finance ministers have agreed new rules designed to simplify how value-added tax (VAT) is collected on online purchases shipped into the European Union.
The changes extend the EU’s digital VAT Import One Stop Shop (IOSS) — a system that lets non-EU sellers register in a single member state to handle VAT due across the bloc — to cover goods of any value, rather than only parcels worth under €150, the Council of the EU announced on Monday.
The agreement also expands IOSS to include e-commerce sales of goods held in EU customs warehouses by non-EU operators.
Customs warehouses are facilities where imported goods can be stored before being released for sale.
Simon Harris, Ireland’s Tánaiste and Minister for Finance, said the measures would simplify processes for suppliers and customs authorities and make it easier for governments to collect VAT revenues.
Platforms to become responsible for VAT collection from 2028
From 1 July 2028, non-EU online platforms will be treated as the “deemed supplier” for VAT purposes on all goods they sell into the EU, regardless of value, the Council said.
In practice, this means platforms will be responsible for collecting VAT from EU consumers and paying it to the relevant authorities.
The change is linked to the planned launch of an EU customs data hub on 1 July 2028.
The European Parliament will now be consulted before the Council formally adopts the rules, which are due to apply from 1 July 2028.
