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EU Parliament backs 2028 ending €150 IOSS limits

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:

  1. 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.
  2. 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.

EU VAT reforms

Reform (click for details) Update
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2035 Harmonisation of EU e-invoicing and domestic regimes Jan 2035
2030 Digital Reporting Requirements and e-invoicing harmonisation July 2030
Structured e-invoices supercede paper invoices July 2030
EC Sales lists replaced by Digital Reporting Requirements July 2030
2028 EU Customs reforms Published May 2023
€150 import consignment threshold removed Published May 2023
2027 Single VAT Registration in the EU - extension of OSS July 2027
Call-off stock VAT simplification ends July 2027
Harmonisation of B2B Reverse Charge rules July 2027
Proposal for VAT treatment of the platform economy July 2027
2026 DAC8 harmonised crypto asset reporting Approved May 2023
2025 VAT registration thresholds equivalence foreign businesses 1 Jan 2025
Virtual events VAT rule changes 1 Jan 2025
Financial Services VAT exemption reform proposals Consultation complete; proposal awaited
Tour operator margin scheme VAT reforms EC undertaking fresh review
2024 Payment providers' seller transaction reporting and bookkeeping obligations In effect since 1 Jan 2024
2023 DAC 7 - marketplace reporting harmonisation In effect since 1 Jan 2024
2022 IOSS reforms to prevent double taxation On hold
EU reduced VAT rate freedoms Entered into force 6 April 2022
VAT in the Digital Age proposals Published Dec 2022
EU DAC8 cryptocurrency tax reporting proposals Published Dec 2022
VAT Gap Initiative Q3 2022
EU Definitive VAT System On hold
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option


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