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The European Union is tightening its grip on VAT compliance for imported goods, targeting online marketplaces like Amazon, Temu, and AliExpress. In a significant step toward modernizing customs and closing tax gaps, the EU Council unanimously approved new regulations that will shift VAT responsibility directly to suppliers and platforms selling to EU consumers.
\n\n\n\nWhile the proposal now heads to the European Parliament for review, this step is purely consultative since taxation remains the exclusive competence of EU member states. The regulation is expected to be adopted soon and could reshape how e-commerce shipments enter the European market.
\n\n\n\nThe One-Stop Shop (OSS) for imports is at the heart of the reform. It will become the default channel for declaring and paying VAT on goods imported into the EU. Sellers will only need to register in one EU country, even when selling across all 27 member states, drastically simplifying administrative burdens.
\n\n\n\n“Today we have taken another step forward with the introduction of the one-stop shop for imports, which makes it impossible de facto not to use the system,” said Wopke Hoekstra, EU Commissioner for Taxation.
\n\n\n\nFailure to use the OSS will not incur legal penalties. Still, Hoekstra emphasized that non-compliance will mean severe delivery delays, possibly lasting days or even weeks, making such sellers less competitive in the eyes of EU consumers.
\n\n\n\n“If you don’t use this new channel, your parcels will be set aside… which would make it very unattractive from the consumer’s point of view,” he added.
\n\n\n\nThe VAT overhaul is part of a broader customs reform plan proposed in 2023. Among the key changes:
\n\n\n\nThese changes aim to reduce VAT fraud and level the playing field between EU and non-EU sellers. About 4 billion parcels under €150 each year are shipped into the EU, primarily from third countries like China. The EU estimates it loses €80 billion annually due to VAT evasion.
\n\n\n\nOnline platforms and international sellers must prepare for the upcoming shift:
\n\n\n\nThis reform marks a significant milestone in the EU’s effort to create a fairer, more efficient digital economy, ensuring that foreign sellers contribute equitably to tax revenues.
\n\n\n\nStay ahead of the curve with Cross Border Magazine to understand and act upon the latest legislation, changes, and technologies that could significantly impact e-commerce and cross-border commerce overall.
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