Proposals as part of VAT in the Digital Age ViDA reforms to reduce fraud
As part of the EU VAT in the Digital Age ViDA reforms, it has been proposed that there will be more transaction data exchanges to help reduce problems on Import One-Stop Shop IOSS fraud. This is part of Pillar 3 of ViDA, Single VAT Registration reforms.
The ideas for reform are being scoped out at the moment for the Autumn return to ViDA discussions. They will settle on more exchange of transaction data between sellers, marketplaces and tax authorities form the start of 2025.
Separately, IOSS fiscal representation may be imposed on non-EU sellers or deemed suppliers where they do not use IOSS.
It has been proposed that marketplace IOSS mandate is enforced as part of the 2028 Customs Reforms. The original date was 2025 as part of ViDA package of reforms. The EC has proposed ending the €150 VAT threshold on consignment stocks from March 2028.
July 2021: IOSS – single EU registration for all imports below €150
EU and non-EU sellers (and facilitating marketplaces) can chose to opt to register for a single monthly IOSS return to report their sales to EU consumers not exceeding €150 consignment value. EU sellers register with their home tax office; not-EU sellers can pick any of the 27 EU countries as their member state of identification. Note, most non-EU sellers will have to appoint an IOSS Intermediary to represent them for VAT.
Once they have been given their unique IOSS number, this should be marked on the customs declaration Check the IOSS invoicing rules which includes a simplified customs declaration for IOSS packages. This will ensure that customs officials are notified that import VAT has been collected, and will ensure speedy Green Channel clearance through the clearance process.
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 pillars to improve efficiency of VAT for all and reduce fraud | |
| 1. Digital Reporting Requirements; e-invoicing | 2030-35: Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| Structured e-invoices mandated for intra-community supplies | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| Withdrawal of EU permission requirements for e-invoicing | |
| 2 Platform economy | July 2027: Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
| 3 Single VAT Registration; extension of OSS | July 2027: Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
