New European rules for import VAT on low value consignments
7 August 2025
As of 1 July 2028, the rules for paying import VAT on low value consignments (up to EUR 150) to consumers in the EU will change. These rules are particularly relevant for suppliers selling goods from outside the EU to consumers within the EU, and for platforms facilitating these supplies. In this tax alert we outline the key changes introduced by this new legislation.
Key changes to import VAT
When goods are imported into the EU, in principle import VAT is due. Currently, the consumer in the EU is usually responsible for paying this import VAT. However, from 1 July 2028 the supplier of the goods will become responsible for paying this import VAT on low value consignments to consumers in the EU. Low value consignments refer to shipments of goods with a maximum value of EUR 150. Platforms that facilitate these supplies are also subject to these rules, as they are deemed suppliers under the so-called platform fiction.
At the same time, the special arrangement for postal and courier services will be abolished from 1 July 2028. Currently, such postal and courier companies collect VAT from the consumer and remit it centrally via a monthly declaration. This arrangement will no longer be necessary, as the supplier rather than the consumer, will be liable to declare and pay the import VAT.
Encouraging the use of the import scheme
The goal of the new legislation is to encourage suppliers to make greater use of the import scheme. The import scheme (also known as the Import One Stop Shop or IOSS) is an existing scheme that suppliers of low value consignments of goods from outside the EU to consumers in the EU can use to declare VAT on those supplies centrally in one EU member state.
Under the import scheme, the import of goods is VAT exempt. To claim this VAT exemption, the supplier or platform must dispose of a special VAT identification number (IOSS VAT number) and provide this number to the customs authorities. The VAT due on the supply of goods can then be declared by the supplier or platform via a monthly IOSS return in one EU member state. This prevents the supplier or platform from having to register in multiple EU member states and file local VAT returns there.
Practical relevance
The responsibility for paying VAT on low value consignments to EU consumers will shift from the consumer to the supplier or the platform (as deemed supplier) as of 1 July 2028. We recommend assessing the impact of the new legislation on your business before 1 July 2028. The use of the import scheme may already be relevant for you now.
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