On the draft Council directive amending Directive 2006/112/EC as regards VAT rules relating to taxable persons who facilitate distance sales of imported goods and the application of the special scheme for distance sales of goods imported from third territories or third countries and special arrangements for declaration and payment of import VAT

(08710/2025 – C100084/2025 – 2023/0158(CNS))

(Special legislative procedure – renewed consultation)

The European Parliament,

–having regard to the Council draft (08710/2025),

–having regard to the Commission proposal to the Council (COM(2023)0262),

–having regard to its position of 22 November 2023,

–having regard to Article 113 of the Treaty on the Functioning of the European Union , pursuant to which the Council consulted Parliament again (C100084/2025),

–having regard to Rule 84 and Rule 86 of its Rules of Procedure,

–having regard to the report of the Committee on Economic and Monetary Affairs (A100000/2025),

1.Approves the Council draft;

2.Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3.Asks the Council to consult Parliament again if it intends to amend its draft substantially;

4.Instructs its President to forward its position to the Council, the Commission and the national parliaments.

On 8 December 2022, the Commission presented the ‘VAT in the digital age’ package (ViDA), which consists of three proposals:

 A proposal for a Council directive amending directive 2006/112/EC as regards VAT rules for the digital age;

 A proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age;

 A proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes.

The package developed an action plan that emphasized the need to reflect on how technology can be used in the fight against tax fraud and how the current VAT rules in the European Union could be adapted for doing business in the digital age. The three proposed changes to make VAT fit for the digital age are

i) A new real time digital reporting system based on e-invoicing,

ii) An update of the VAT rules for the platform economy and

iii) A single VAT registration for businesses selling to consumers across the EU.

The European Parliament was consulted and delivered its opinion on these legislative proposals on 22 November 2023. In January 2025, the Parliament was re-consulted on the draft Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age. This re-consultation was linked to the deemed supplier regime which was a significant point of contention within the Council, making it particularly challenging to reach a final compromise (A10-0001/2025).

The European Parliament is now consulted for the second time for the following reason.

The original VIDA package contained a proposal to make the import one-stop-shop (IOSS) mandatory. However, Member States rejected it. The alternative proposal to motivate the use of IOSS by making suppliers and platforms liable for import VAT if they do not use the IOSS was not mature enough to be included in the VIDA package, which was adopted by Council in March 2025.

In May 2023, the Commission issued a package of proposals to reform the Union Customs Code, notably to abolish the 150€ threshold for exemption of customs duties and VAT on import.

In the summer of 2024, the provisions to incentivise the use of IOSS were added to the Commission proposals to reform the Union Customs Code in view of their relation with the customs rules. The Polish Presidency advocated splitting these provisions to incentivise the use of IOSS, considered as sufficiently mature, from the customs proposal and to agree on them separately. This was accepted by delegations.

At the 13 May 2025 ECOFIN, the Council agreed to incorporate the provisions to incentivise the use of IOSS in the VAT Directive, which make suppliers and platforms liable for import VAT if they do not use the IOSS.

In its opinion on 22 November 2023, the European Parliament advocated that the IOSSs should operate transparently and securely. Moreover, it also highlighted that a unified approach between the IOSS, on the one hand, and customs legislation and practice, on the other, would help bring an end to inconsistencies, errors and double taxation. Moreover, the European Parliament underlined the need to limit the administrative burden for SMEs. In addition, the European Parliament asked to assess the advantages and disadvantages of making IOSS mandatory.

Therefore, in light of the above, the rapporteur is of the view that a simplified procedure without amendments is the relevant procedure for this re-consultation.