European Union: Council of the European Union adopted general approach on directive amending VAT rules for distance sales of imported goods

On 13 May 2025, the Council of the European Union adopted its general approach on the directive amending Directive 2006/112/EC concerning VAT rules for taxable persons facilitating distance sales of imported goods. The directive aims to improve VAT compliance by making platforms and foreign traders liable for VAT at the point of sale, encouraging the use of the Import One-Stop Shop (IOSS). The revised rules apply to distance sales of low-value goods imported into the EU and aim to reduce fraud and administrative burden. The directive falls under the special legislative procedure and will now proceed to the European Parliament for consultation, with formal adoption by the Council to follow.