ECON votes for Directive changes as part of wider March 2028 Customs & VAT reforms
On 24th October 2023, the EU Parliament’s Committee on Economic and Monetary Affairs committee (ECON) voted in favour of two amendments to the VAT Directive 2006/112/EC.
These two reforms are part of five VAT elements in the 2028 Customs and VAT reforms proposed this May by the EU Commission. Both arise from the proposal to withdraw the current €150 limit on the IOSS scheme from March 2028. This includes VAT and customs being charged in the checkout for all import consignments exceeding €150, not just on sales below this threshold for VAT only as today.
The two reforms are:
- Sellers or marketplaces (deemed supplier) affected by the €150 limit ending may use the e-commerce package’s Import One-Stop Shop returnto report these sales. Currently, they are limited to sales not exceeding €150.
- The e-commerce package optional Special Arrangements will be extended to consignments above €150, too. These allow an option whereby postal operators, express carriers, customs agents, and other operators who fulfil the customs import declarations on behalf of the customer are allowed to declare and remit the collected VAT on those imports on a monthly basis.