Parliament approves VAT rules for distance sales of imported goods

Decision

The European Parliament adopted a legislative resolution on 22 November 2023 approving the Commission proposal to amend Directive 2006/112/EC on VAT rules relating to taxable persons who facilitate distance sales of imported goods; the resolution is recorded as P9_TA(2023)0423 and is linked to report A9-0320/2023. The adoption was made under the special legislative procedure with Article 113 TFEU and Parliament instructed its President to forward its position to the Council, the Commission and national parliaments, while asking the Council to notify Parliament if it intends to depart from the approved text or to consult Parliament again if it intends to substantially amend it.

What Changes

The text amends Directive 2006/112/EC to address VAT rules for taxable persons who facilitate distance sales of imported goods, the application of the special scheme for distance sales of goods imported from third territories or third countries and special arrangements for declaration and payment of import VAT. These changes alter the legal framework for how import VAT is applied, declared and paid in the context of distance sales and clarify the scope of the special scheme, with practical compliance implications for taxable persons and national tax authorities.

Who Is Affected

The measures affect the European Union as a whole, tax administrations of EU Member States and taxable persons who facilitate distance sales of imported goods.