EU Adopts New Rules on Import VAT Collections, Reporting

EU affairs ministers Friday formally adopted a bill that updates the way EU-based sellers report and pay value-added tax on goods imported from outside the bloc.

The rules are meant ensure EU-based importers are liable for VAT instead of consumers, and will push non-EU suppliers to register on the so-called Import One-Stop-Shop, a reporting platform that allows companies to register in one EU country to declare and pay VAT.

The IOSS enables VAT payments up front when the consumer purchases the item, rather than at the border, and is designed to protect tax revenues and increase compliance.

The agreement is ...