EU seeks agreement to extend Import One Stop Shop to higher-value ecommerce imports
The EU is targeting a ECOFIN autumn agreement on removing the €150 consignment threshold for the Import One Stop Shop (IOSS), extending the VAT simplification to higher-value ecommerce imports.
The current Irish EU Council Presidency is aiming for political agreement at the 9 November ECOFIN meeting, following further technical discussions since the summer return.
IOSS enables non-EU sellers and marketplaces to charge VAT at checkout on imported ecommerce sales and remit it through a single monthly EU VAT return. However, it is currently restricted to consignments with an intrinsic value not exceeding €150.
EU plans to remove €150 IOSS limit
The outstanding proposal would remove the €150 ceiling altogether, allowing IOSS to be used for higher-value distance sales of imported goods.
This is intended to align the VAT treatment of ecommerce imports with the EU’s wider Customs Reform.
The new Union Customs Code will introduce a significantly revised customs framework for ecommerce from 1 July 2028, including use of the EU Customs Data Hub for distance sales.
Separately, the previous €150 customs duty exemption was effectively abolished from 1 July 2026. A temporary €3 customs duty now applies to qualifying low-value imports until the new customs arrangements take effect.
IOSS security concerns delay agreement
The IOSS proposal has proved more difficult to agree.
Some member states are concerned that removing the €150 limit could increase VAT fraud risks, particularly where higher-value goods are imported without VAT being collected at the border but the seller subsequently fails to declare and pay the VAT through IOSS.
Discussions are therefore focusing on strengthening safeguards around access to IOSS.
These include tighter controls over IOSS intermediaries and a proposed EU digital verification mechanism to confirm that businesses are entitled to use an IOSS registration.
Wider 2028 IOSS reforms already agreed
The threshold proposal forms part of a broader overhaul of VAT collection on ecommerce imports.
Separate IOSS reforms were adopted in Directive (EU) 2025/1539. From 1 July 2028, these will strengthen incentives for overseas sellers and marketplaces to use IOSS and reduce reliance on VAT collection when goods arrive in the EU.
Removing the €150 IOSS threshold would complete an important part of that reform by opening the single VAT reporting scheme to higher-value ecommerce imports.
IOSS was introduced in 2021 to simplify VAT collection on imported ecommerce sales into the EU. Non-EU sellers and marketplaces can charge VAT at checkout and remit it through a single monthly EU filing, avoiding VAT collection at the border.
