Report: Parliament approves Council draft amending VAT rules for distance sales and IOSS incentives

Decision

The European Parliament approved the Council draft (08710/2025 – C10‑0084/2025) and adopted the related legislative text noted as P10_TA(2025)0144. The decision was taken under a simplified procedure and was adopted on 24.6.2025 with the text tabled on 27.6.2025.

What Changes

The draft directive amends Directive 2006/112/EC to update VAT rules for taxable persons who facilitate distance sales of imported goods, and to govern 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. The Council agreed to incorporate provisions to incentivise use of the import one-stop-shop by making suppliers and platforms liable for import VAT if they do not use the IOSS, replacing the earlier proposal to make IOSS mandatory.

Who Is Affected

The changes directly affect suppliers and online platforms that facilitate distance sales of imported goods, taxable persons using the special distance-sales schemes, and Member States administering import VAT arrangements.

Sources

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