ECOFIN adopts directive on the 2028 proposed expansion of the Import One Stop Shop (IOSS)

6 August 2025

In July 2025, the European Council formally adopted new measures concerning VAT rules for distance sales of imported goods and import VAT. These changes aim to encourage greater use of the Import One Stop Shop.

The IOSS is an electronic portal that allows suppliers to declare and remit VAT on sales of low-value imported goods, valued up to €150, when the goods are located outside the EU at the time of sale and dispatched directly to EU consumers.

To prevent VAT loss and promote IOSS usage, the new rules shift the responsibility for paying import VAT from the consumer to the seller—or the online marketplace facilitating the sale. Sellers who choose not to use the IOSS will be required to obtain VAT registrations in each EU member state where sales occur.

The directive further clarifies that if the seller fails to meet their VAT obligations, the customer receiving the goods may still be held responsible for paying the import VAT. Each EU member state will have the discretion to set its own requirements for implementing this option.

If you are selling low-value goods into the EU and need assistance with your VAT reporting, please contact us for further information here.