EU Agrees to Remove €150 Import VAT Threshold for One-Stop Shop (IOSS)
The European Commission has welcomed the Council's agreement to eliminate the €150 threshold for the VAT Import One-Stop Shop (IOSS). This significant change means that online sellers and marketplaces importing goods from outside the EU will now declare and pay VAT through a single registration for all goods, regardless of their value. This move aims to simplify compliance for businesses and align VAT collection processes more closely with customs procedures. This development is part of an ongoing effort to streamline VAT rules for e-commerce transactions within the EU. The removal of the threshold will ensure a consistent application of VAT on all imported goods, potentially reducing administrative burdens for businesses by removing the need to differentiate between low-value and higher-value imports when using the IOSS scheme. It further consolidates the 'deemed supplier' principle for marketplaces.
- Online sellers and marketplaces importing goods into the EU will use the IOSS scheme for all goods, irrespective of value, simplifying VAT declaration.
- The removal of the €150 threshold harmonizes VAT with customs processes for goods imported into the EU.
- Multinational e-commerce businesses should update their VAT compliance systems and processes to reflect this change, which aims to reduce complexity.