Council Extends VAT One Stop Shop to All Goods
EU measures remove the €150 parcel threshold and bring non-EU online platforms under deemed-supplier VAT rules from 1 July 2028.
Updated on Nov. 9, 2026 in International Trade
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The Council of the EU agreed measures extending the VAT Import One Stop Shop to all goods regardless of value. Non-EU online platforms will be treated as deemed suppliers for VAT on all goods sold into the EU from 1 July 2028.
Why it matters
The reform removes the historical threshold that let goods worth under €150 enter the EU without customs duties, and it aims to improve VAT compliance on e-commerce sales into the EU. It also aligns the VAT framework with the recent EU customs reform.
The IOSS previously covered only parcels valued under €150, a threshold now removed so the scheme applies to goods of any value. The European Parliament must still be consulted before the Council formally adopts the rules.
The players
Council of the European Union
The Council of the European Union is the EU body of member state ministers that formally adopts EU legislation alongside the European Parliament.
European Parliament
The European Parliament is the directly elected legislative body of the European Union, which must be consulted on these rules before formal adoption.
The details
The IOSS now extends to e-commerce sales of goods stored in EU customs warehouses by non-EU operators, which lets platforms import in bulk and repackage for individual sale. Platforms are responsible for collecting VAT on behalf of the underlying seller and paying it to authorities, and should include all VAT and customs due in the final check-out price.
Timeline
- 2026-11-09
Council agreed further VAT simplification measures for online sales.
1 July 2028: Deemed-supplier VAT rules for non-EU platforms and the EU customs data hub take effect.
Market Dynamics
The measures follow the EU customs reform that removed the €150 duty exemption for low-value parcels, closing the VAT side of the same low-value import gap. They bring VAT collection for cross-border e-commerce into line with the customs changes already under way.
Shoppers buying low-value goods from non-EU online sellers will see all VAT and customs due included in the final check-out price. Platforms selling into the EU will need to collect and remit that VAT under the new deemed-supplier rules from 1 July 2028.
The takeaway
Online shoppers buying from non-EU platforms should expect all VAT and customs costs to appear at check-out once the 2028 rules apply. The change removes the €150 cutoff that once let cheaper parcels avoid duties, so the true price of cross-border orders will be easier to compare.
What happens next
The European Parliament will be consulted before formal Council adoption, and the deemed-supplier rules take effect on 1 July 2028.
Further reading
For broader context on cross-border tariffs and trade rules, see International Trade.
Source note: This article includes information reported by Consiliul Uniunii Europene.
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