Business using IOSS may incur customs duties debt on import distance sales from March 2028
The EU European Commission unveiled major Customs Union 2028 reforms last month which included the creation of a new ‘Deemed Importer’ model. These are traders importing goods into the EU to EU consumers (distance sellers) who will have the option to incur a customs duties debt at the point of import and use the Import One-Stop Shop IOSS return.
March 2028 – Removing the €150 import duties threshold
The trigger for the Deemed Importer is the proposal to withdraw the €150 customs duties exemption on low-value consignments being shipped to consumers. From March 2028, these consignments will be subject to customs duties.
This means e-commerce sellers or deemed supplier marketplaces will have to charge simplified bucket tariff and duties in the checkout on relevant sales. But rather than paying the duties at the border at clearance, they can incur a Customs debt. And they may settle this via the VAT IOSS return. IOSS covert the VAT charged on the same consignments, and was introduced with the EU VAT e-commerce package in July 2021.
The basic requirement for the Deemed Importer status is that the trader must be eligible for IOSS reporting.