To make this shift workable in practice, the directive provides a strong incentive to use the Import One Stop Shop (IOSS). When a supplier or platform operates under IOSS, the import is exempt from VAT, and the VAT due on the distance sale is declared via a single periodic electronic return in the Member State of identification. That Member State redistributes the VAT to the Member State of consumption. Suppliers or platforms that do not use IOSS will be required to register for VAT in every Member State where their goods are delivered to consumers.
For businesses established outside the EU, the draft directive introduces a general obligation to appoint a fiscal representative in the Member State of import, unless a mutual assistance agreement exists between that Member State and the supplier’s country of establishment.
In addition, the directive allows Member States to hold indirect customs representatives or other involved parties jointly and severally liable for import VAT if they act without being appointed as a fiscal representative. The aim is to strengthen compliance throughout the logistics chain.
If the IOSS simplification is not used and import VAT obligations are not properly fulfilled, the goods will, in principle, not be released for free circulation. In such cases, Member States may allow the consumer – subject to explicit consent – to pay the outstanding import VAT to obtain release of the goods. While this fallback mechanism can offer relief in exceptional cases, it may cause delivery delays, extra costs for the buyer, and disputes over who is ultimately liable.
The simplified arrangement for postal and courier operators will be abolished. The EU is clearly opting for a system in which the supplier or online platform is responsible for both import and sales VAT.
Member States must apply the provisions of the directive by 1 July 2028 at the latest. Businesses selling goods up to €150 to EU consumers are therefore well advised to re-evaluate their data flows, VAT compliance processes, logistics contracts, and IT systems. Choosing between IOSS or multiple local VAT registrations – with or without the appointment of a fiscal representative – requires a well-considered analysis.