EU member state representatives have agreed to lift the €150 ceiling on the VAT Import One-Stop Shop, the scheme that lets overseas online sellers pay European VAT through a single registration. A separate change will make non-EU platforms responsible for collecting that tax on all goods sold into the bloc from July 1, 2028. The European Parliament still has to be consulted before the rules are formally adopted.
What the current system leaves out
Under the existing framework, non-EU online sellers can register in one Member State and use the digital IOSS system to meet VAT obligations across the whole bloc. The catch is that the system covers only consignments valued below €150. Higher-value orders fall outside it, which means they must be handled through other procedures at the border.
How the new rules work
The revised agreement removes that ceiling, so suppliers and marketplaces can report and pay VAT on higher-priced products through the same mechanism. It also extends IOSS coverage to goods that non-EU operators hold in customs warehouses inside the EU. Businesses can import stock in bulk, then package and ship individual orders to consumers, which reduces the number of separate shipments that must clear customs.
- The €150 ceiling on IOSS is removed for higher-value imports.
- Goods held in EU customs warehouses by non-EU operators are covered for online sales.
- From July 1, 2028, non-EU platforms become deemed suppliers for VAT on all goods sold into the EU, regardless of value.
What shoppers and sellers may notice
Platforms will be responsible for collecting VAT on transactions involving underlying sellers and EU consumers, then remitting the tax to the appropriate authorities. Online marketplaces are generally expected to show applicable VAT and customs charges in the final price at checkout, which should make the total cost easier to see before payment. The timetable is designed to give businesses and national tax authorities time to update their administrative processes and IT systems.
What remains to be decided
Ireland's finance minister, Simon Harris, welcomed the agreement as the final building block of a broader overhaul of the EU customs framework, arguing it will simplify compliance for suppliers and help treasuries collect tax more easily. The European Commission has also welcomed the deal for the greater regulatory certainty it provides. Because Parliament's consultation has not yet taken place, the details could still change before the Council adopts the legislation.