BETA


2023/0158(CNS) 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

Progress: Awaiting final decision

RoleCommitteeRapporteurShadows
Lead ECON CHASTEL Olivier (icon: Renew Renew) PEREIRA Lídia (icon: EPP EPP), LALUCQ Aurore (icon: S&D S&D), PEKSA Mikuláš (icon: Verts/ALE Verts/ALE), MOŻDŻANOWSKA Andżelika Anna (icon: ECR ECR), MACMANUS Chris (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
TFEU 113

Events

2023/12/13
   ESC - Economic and Social Committee: opinion, report
Documents
2023/11/22
   EP - Results of vote in Parliament
2023/11/22
   EP - Decision by Parliament
Details

The European Parliament adopted by 603 votes to 23 with 10 abstentions, in the framework of a special legislative procedure (consultation), a legislative resolution on the proposal for a Council directive amending Directive 2006/112/EC as regards the 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.

Parliament approved the Commission's proposal without amendments.

As a reminder, the proposal seeks to adapt the EU VAT framework by expanding the range of supplies covered by the IOSS (Import One Stop Shop), Special Arrangements and deemed supplier regime by removing the EUR 150 threshold, which currently limits their application and effectiveness. Therefore, the IOSS could be used to declare and remit the VAT due on all distance sales of imported goods into the EU, irrespective of their value, but not including products subject to excise duties, which remain excluded from the scheme.

Documents
2023/10/31
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Economic and Monetary Affairs adopted, in the framework of a special legislative procedure (Parliament’s consultation), the report by Olivier CHASTEL (Renew, BE) on the proposal for a 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.

As a reminder, the proposal seeks to adapt the EU VAT framework by expanding the range of supplies covered by the IOSS (Import One Stop Shop), Special Arrangements and deemed supplier regime by removing the EUR 150 threshold, which currently limits their application and effectiveness. Therefore, the IOSS could be used to declare and remit the VAT due on all distance sales of imported goods into the EU, irrespective of their value, but not including products subject to excise duties, which remain excluded from the scheme.

The committee called on the European Parliament to approve the Council draft without amendments.

Documents
2023/10/24
   EP - Vote in committee
2023/10/05
   EP - Committee draft report
Documents
2023/09/11
   EP - Committee referral announced in Parliament
2023/07/12
   EP - CHASTEL Olivier (Renew) appointed as rapporteur in ECON
2023/05/17
   EC - Legislative proposal published
Details

PURPOSE: to advance the concept of a single VAT registration in the Union.

PROPOSED ACT: Council Directive.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: this initiative, together with the proposal for a Regulation of the European Parliament and of the Council establishing the European Union Customs Code, the European Union Customs Data Hub and the European Union Customs Authority, is part of a broad and comprehensive reform of the Customs Union.

In 2020, distance sales of imported goods in the EU-27 were estimated at EUR 29 billion. In addition, stakeholders indicated that a significant proportion of distance sales of imported goods - indicatively around 10-20% - exceeded EUR 150.

Under the ‘deemed supplier’ scheme provided for in the VAT Directive (Directive 2006/112/EC), where a taxable person facilitates, through the use of an electronic interface, distance sales of goods imported from third territories or third countries, that taxable person is deemed to be the deemed supplier of those goods.

The VAT Directive establishes a special scheme for distance sales of goods imported from third territories or third countries, known as the Import One Stop Shop (IOSS). However, IOSS is only available for distance sales of imported goods whose intrinsic value does not exceed EUR 150. The proposed reform of the customs framework creates a clear justification for removing the EUR 150 threshold, which currently limits the application of IOSS to distance sales of imported goods not exceeding EUR 150.

In addition, under the VAT Directive, where certain conditions are met, the special scheme allows postal operators, express carriers, customs agents and other operators who complete import customs declarations on behalf of the customer to declare and pay monthly the VAT collected on certain imports. The special scheme is limited to goods imported in consignments with an intrinsic value not exceeding EUR 150, excluding products subject to excise duty. Therefore, in order to reduce the compliance burden and costs associated with goods imported in consignments with an intrinsic value of more than EUR 150, the EUR 150 threshold should be removed.

PURPOSE: this proposal seeks to amend 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. It will further adapt the EU VAT framework by expanding the range of supplies covered by the Import One-Stop Shop (IOSS), Special Arrangements and deemed supplier regime.

The proposal includes three main elements:

1. it is proposed to extend the application of the deemed supplier rule , which is currently limited to distance sales of imported goods not exceeding EUR 150, to cover all distance sales of goods imported from a third territory or third country. This extension of the deemed supplier rule is achieved by removing the reference to the EUR 150 threshold. Under its expanded scope, the deemed supplier rule would therefore apply to all distance sales of imported goods into the EU that are facilitated by an electronic interface, irrespective of the intrinsic value of the consignment;

2. it is proposed to extend the application of the IOSS , which is currently limited to distance sales of imported goods in consignments of an intrinsic value not exceeding EUR 150, to cover all distance sales of imported goods, irrespective of their value . However, products subject to excise duty would remain excluded from the scheme. The extension of the IOSS would help to advance the concept of a single VAT registration in the EU by further limiting the instances in which a taxable person is required to register for VAT in another Member State. This extension of the application of the IOSS is achieved by removing the reference to the EUR 150 threshold;

3. the proposal would extend the application of the special arrangements which is currently limited to eligible imported goods of an intrinsic value not exceeding EUR 150, to cover all eligible goods. Products subject to excise duty would remain excluded from these arrangements. The extension of the special arrangements will help to advance the concept of a single VAT registration in the EU by further limiting the instances in which a taxable person is required to register for VAT in another Member State.

Lastly, this proposal is expected to increase VAT revenues for Member States as it will improve the collection of VAT. Between 2023 and 2032, the abolition of VAT registration obligations should generate savings of EUR 8.7 billion.

Documents

Votes

TVAT: taxable persons, special scheme and special arrangements for declaration and payment relating to distance sales of imported goods – A9-0320/2023 – Olivier Chastel – Commission proposal #

2023/11/22 Outcome: +: 603, -: 23, 0: 10
IT FR DE ES PL RO BE CZ NL PT BG HU SK DK SE FI IE LT AT EL HR SI LV EE LU MT CY ??
Total
72
71
84
55
45
33
19
20
25
21
15
15
14
13
19
12
12
11
16
15
11
8
7
7
5
4
6
1
icon: PPE PPE
161

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Luxembourg PPE

For (1)

1

Malta PPE

For (1)

1

Cyprus PPE

2
icon: S&D S&D
126

Belgium S&D

2

Czechia S&D

For (1)

1

Slovakia S&D

For (1)

1
3

Lithuania S&D

2

Greece S&D

1

Slovenia S&D

2

Latvia S&D

2

Estonia S&D

2

Luxembourg S&D

For (1)

1

Cyprus S&D

2
icon: Renew Renew
93

Poland Renew

1

Hungary Renew

For (1)

1
3

Finland Renew

3

Ireland Renew

For (1)

1

Lithuania Renew

1

Greece Renew

1

Croatia Renew

For (1)

1

Slovenia Renew

2

Latvia Renew

For (1)

1

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Italy Verts/ALE

3

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Romania Verts/ALE

1

Belgium Verts/ALE

3

Czechia Verts/ALE

3

Netherlands Verts/ALE

3

Portugal Verts/ALE

1

Denmark Verts/ALE

For (1)

1

Sweden Verts/ALE

3

Finland Verts/ALE

For (1)

1

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Austria Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
65

Germany ECR

1

Romania ECR

Abstain (1)

1

Bulgaria ECR

2

Slovakia ECR

For (1)

1

Sweden ECR

3

Lithuania ECR

1

Greece ECR

Abstain (1)

1

Croatia ECR

1

Latvia ECR

For (1)

1
icon: NI NI
42

Belgium NI

For (1)

1

Lithuania NI

1

Croatia NI

Against (1)

Abstain (1)

2

Latvia NI

1
icon: ID ID
54

Czechia ID

For (1)

Against (1)

2

Denmark ID

For (1)

1

Austria ID

3

Estonia ID

For (1)

1
icon: The Left The Left
31

Germany The Left

3

Belgium The Left

Abstain (1)

1

Czechia The Left

1

Netherlands The Left

For (1)

1

Portugal The Left

4

Denmark The Left

1

Sweden The Left

For (1)

1

Finland The Left

For (1)

1

Greece The Left

2

Cyprus The Left

2

The Left

1

History

(these mark the time of scraping, not the official date of the change)

links
Research document
procedure/Legislative priorities
  • title: Joint Declaration 2023-24 url: https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=41380&l=en
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
procedure/Legislative priorities
  • title: Joint Declaration 2023-24 url: https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=41380&l=en
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
procedure/Other legal basis
Old
Rules of Procedure EP 159
New
Rules of Procedure EP 165
events/4
date
2023-11-22T00:00:00
type
Results of vote in Parliament
body
EP
docs
url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
events/4
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2023-11-22T00:00:00
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Results of vote in Parliament
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EP
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url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
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2023-11-22T00:00:00
type
Results of vote in Parliament
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EP
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url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
events/4
date
2023-11-22T00:00:00
type
Results of vote in Parliament
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EP
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url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
events/4
date
2023-11-22T00:00:00
type
Results of vote in Parliament
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EP
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url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
events/4
date
2023-11-22T00:00:00
type
Results of vote in Parliament
body
EP
docs
url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=60675&l=en title: Results of vote in Parliament
docs/1
date
2023-12-13T00:00:00
docs
url: https://dmsearch.eesc.europa.eu/search/public?k=(documenttype:AC)(documentnumber:3252)(documentyear:2023)(documentlanguage:EN) title: CES3252/2023
type
Economic and Social Committee: opinion, report
body
ESC
docs/1
date
2023-11-22T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0423_EN.html title: T9-0423/2023
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/4/summary
  • The European Parliament adopted by 603 votes to 23 with 10 abstentions, in the framework of a special legislative procedure (consultation), a legislative resolution on the proposal for a Council directive amending Directive 2006/112/EC as regards the 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.
  • Parliament approved the Commission's proposal without amendments.
  • As a reminder, the proposal seeks to adapt the EU VAT framework by expanding the range of supplies covered by the IOSS (Import One Stop Shop), Special Arrangements and deemed supplier regime by removing the EUR 150 threshold, which currently limits their application and effectiveness. Therefore, the IOSS could be used to declare and remit the VAT due on all distance sales of imported goods into the EU, irrespective of their value, but not including products subject to excise duties, which remain excluded from the scheme.
docs/1
date
2023-11-22T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0423_EN.html title: T9-0423/2023
type
Text adopted by Parliament, 1st reading/single reading
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EP
events/4
date
2023-11-22T00:00:00
type
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url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0423_EN.html title: T9-0423/2023
forecasts
  • date: 2023-11-22T00:00:00 title: Vote scheduled
procedure/stage_reached
Old
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New
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forecasts/0/title
Old
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New
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forecasts/0
date
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title
Vote in plenary scheduled
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date
2023-11-20T00:00:00
title
Indicative plenary sitting date
docs/1
date
2023-10-31T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0320_EN.html title: A9-0320/2023
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/3/summary
  • The Committee on Economic and Monetary Affairs adopted, in the framework of a special legislative procedure (Parliament’s consultation), the report by Olivier CHASTEL (Renew, BE) on the proposal for a 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.
  • As a reminder, the proposal seeks to adapt the EU VAT framework by expanding the range of supplies covered by the IOSS (Import One Stop Shop), Special Arrangements and deemed supplier regime by removing the EUR 150 threshold, which currently limits their application and effectiveness. Therefore, the IOSS could be used to declare and remit the VAT due on all distance sales of imported goods into the EU, irrespective of their value, but not including products subject to excise duties, which remain excluded from the scheme.
  • The committee called on the European Parliament to approve the Council draft without amendments.
docs/1
date
2023-10-31T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0320_EN.html title: A9-0320/2023
type
Committee report tabled for plenary, 1st reading/single reading
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  • url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0320_EN.html title: A9-0320/2023
events/3
date
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docs
url: https://www.europarl.europa.eu/doceo/document/ECON-PR-753575_EN.html title: PE753.575
type
Committee draft report
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date
2023-05-17T00:00:00
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Legislative proposal
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committees/0
type
Responsible Committee
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False
rapporteur
name: CHASTEL Olivier date: 2023-07-12T00:00:00 group: Renew Europe group abbr: Renew
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
shadows
name: LALUCQ Aurore group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
events/1
date
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type
Committee referral announced in Parliament
body
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  • ECON/9/12066
procedure/stage_reached
Old
Preparatory phase in Parliament
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procedure/other_consulted_institutions
European Economic and Social Committee
committees/0/shadows
  • name: LALUCQ Aurore group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
events/0/summary
  • PURPOSE: to advance the concept of a single VAT registration in the Union.
  • PROPOSED ACT: Council Directive.
  • ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.
  • BACKGROUND: this initiative, together with the proposal for a Regulation of the European Parliament and of the Council establishing the European Union Customs Code, the European Union Customs Data Hub and the European Union Customs Authority, is part of a broad and comprehensive reform of the Customs Union.
  • In 2020, distance sales of imported goods in the EU-27 were estimated at EUR 29 billion. In addition, stakeholders indicated that a significant proportion of distance sales of imported goods - indicatively around 10-20% - exceeded EUR 150.
  • Under the ‘deemed supplier’ scheme provided for in the VAT Directive (Directive 2006/112/EC), where a taxable person facilitates, through the use of an electronic interface, distance sales of goods imported from third territories or third countries, that taxable person is deemed to be the deemed supplier of those goods.
  • The VAT Directive establishes a special scheme for distance sales of goods imported from third territories or third countries, known as the Import One Stop Shop (IOSS). However, IOSS is only available for distance sales of imported goods whose intrinsic value does not exceed EUR 150. The proposed reform of the customs framework creates a clear justification for removing the EUR 150 threshold, which currently limits the application of IOSS to distance sales of imported goods not exceeding EUR 150.
  • In addition, under the VAT Directive, where certain conditions are met, the special scheme allows postal operators, express carriers, customs agents and other operators who complete import customs declarations on behalf of the customer to declare and pay monthly the VAT collected on certain imports. The special scheme is limited to goods imported in consignments with an intrinsic value not exceeding EUR 150, excluding products subject to excise duty. Therefore, in order to reduce the compliance burden and costs associated with goods imported in consignments with an intrinsic value of more than EUR 150, the EUR 150 threshold should be removed.
  • PURPOSE: this proposal seeks to amend 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. It will further adapt the EU VAT framework by expanding the range of supplies covered by the Import One-Stop Shop (IOSS), Special Arrangements and deemed supplier regime.
  • The proposal includes three main elements:
  • 1. it is proposed to extend the application of the deemed supplier rule , which is currently limited to distance sales of imported goods not exceeding EUR 150, to cover all distance sales of goods imported from a third territory or third country. This extension of the deemed supplier rule is achieved by removing the reference to the EUR 150 threshold. Under its expanded scope, the deemed supplier rule would therefore apply to all distance sales of imported goods into the EU that are facilitated by an electronic interface, irrespective of the intrinsic value of the consignment;
  • 2. it is proposed to extend the application of the IOSS , which is currently limited to distance sales of imported goods in consignments of an intrinsic value not exceeding EUR 150, to cover all distance sales of imported goods, irrespective of their value . However, products subject to excise duty would remain excluded from the scheme. The extension of the IOSS would help to advance the concept of a single VAT registration in the EU by further limiting the instances in which a taxable person is required to register for VAT in another Member State. This extension of the application of the IOSS is achieved by removing the reference to the EUR 150 threshold;
  • 3. the proposal would extend the application of the special arrangements which is currently limited to eligible imported goods of an intrinsic value not exceeding EUR 150, to cover all eligible goods. Products subject to excise duty would remain excluded from these arrangements. The extension of the special arrangements will help to advance the concept of a single VAT registration in the EU by further limiting the instances in which a taxable person is required to register for VAT in another Member State.
  • Lastly, this proposal is expected to increase VAT revenues for Member States as it will improve the collection of VAT. Between 2023 and 2032, the abolition of VAT registration obligations should generate savings of EUR 8.7 billion.
commission
  • body: EC dg: Taxation and Customs Union commissioner: GENTILONI Paolo