The EU Economic and Financial Affairs Council has agreed to extend the VAT Import One Stop Shop to goods of all values and introduce new VAT collection responsibilities for non-EU online platforms from 1 July 2028.
The EU Economic and Financial Affairs Council agreed on 9 November 2026 to expand the VAT Import One Stop Shop (IOSS) system and improve VAT collection on e-commerce sales into the EU, according to a press release issued on the same day.
The changes will allow non-EU suppliers and online platforms to use IOSS for goods of any value and extend the scheme to goods stored in EU customs warehouses. The new rules will apply from 1 July 2028.
IOSS extended to all goods
Under the current rules, non-EU suppliers and online platforms can use the digital VAT IOSS to report and pay VAT on e-commerce sales to EU consumers. However, the scheme currently applies only to consignments valued below EUR 150. It also allows businesses to register in a single EU Member State to meet their VAT obligations across the EU.
The Council’s agreement removes this value restriction, allowing suppliers and platforms to use IOSS for goods of any value. The change is expected to simplify VAT compliance for businesses and reduce administrative work for tax and customs authorities.
Goods in EU customs warehouses included
The updated rules also extend IOSS to e-commerce sales of goods stored in EU customs warehouses by non-EU operators.
Online platforms often import goods in bulk and store them in customs warehouses before preparing individual shipments for EU consumers. Extending IOSS to these transactions will help simplify the VAT process and support more efficient customs procedures.
Online platforms to become deemed suppliers
From 1 July 2028, following the launch of the EU customs data hub, non-EU online platforms will be treated as deemed suppliers for VAT purposes on all goods sold into the EU, regardless of their value.
Under this arrangement, the platforms will be responsible for collecting VAT and paying it to the relevant tax authorities on behalf of the underlying sellers. They will also generally need to include applicable VAT and customs charges in the final prices displayed to EU consumers at checkout.
Next steps
The European Parliament will be consulted before the Council formally adopts the new rules. Once adopted, the measures will apply from 1 July 2028.
The changes form part of the broader EU customs reform package, which aims to modernise customs procedures, improve the collection of duties and taxes, facilitate international trade, particularly e-commerce, and strengthen controls on non-compliant and unsafe goods.
The reform also removes the previous EUR 150 customs duty exemption threshold. The latest VAT measures align the IOSS framework with the revised customs system, ensuring more consistent treatment of e-commerce transactions and improving VAT collection across the EU.
