Parliament comments on EC IOSS threshold removal proposal
The European Parliament has produced a briefing on the European Commissions proposals for e-commerce import VAT reforms. This includes:
- Removal of IOSS €150 threshold reporting limit
- Extend deemed supplier obligations for marketplaces facilitating consignments exceeding €150
- Removal of €150 for Special Arrangements options
The focus of the reforms is to block tax evasion by e-commerce sellers deliberately mis-valuing their consignments below €150.
The above changes were proposed by the EC following a review of the 2021 Import One-Stop Shop regime as part of the e-commerce package.
The EC had proposed to introduce some of the above in its VAT in the Digital Age reforms; but these have now been removed. Instead, some of them are now incorporated in the 2028 Customs Union reforms. As part of this overhaul of EU customs policy, in the European Commission is proposing to remove the €150 customs duty exemption. This proposal is also currently being discussed in the Council.
In Parliament, the proposal was assigned to the Economic and Monetary Affairs Committee (ECON – rapporteur: Olivier Chastel, Renew, Belgium). Following a simplified procedure, the European Parliament adopted its (non-binding) report without amendments in November 2023.
