America News Agency

Irish Deputy Prime Minister and Minister for Finance Simon Harris announced that the Council of the European Union had reached an agreement on a new package of measures aimed at improving Value Added Tax (VAT) collection on e-commerce sales from outside the EU and modernizing the customs system.

Expressing Ireland's satisfaction with the decision, Harris said, "I welcome today's agreement on VAT collection, which represents the final piece of our efforts to fundamentally restructure the EU's customs framework. These measures will make it easier for our treasuries to collect the tax revenues that support our public services, while significantly simplifying procedures for both suppliers and customs authorities."

Under the new reform package highlighted by Harris, the €150 exemption threshold in e-commerce will be abolished. The Import One-Stop Shop (IOSS) system, currently available only for consignments valued below €150, will be expanded to cover all goods regardless of their value. This will enable businesses outside the EU to declare VAT on higher-value products through a single member state. The regulation will also cover VAT procedures for goods stored in EU customs warehouses and sold through e-commerce platforms.

According to the agreement, when the "EU Customs Data Hub" becomes operational on July 1, 2028, online sales platforms based outside the EU will be treated as deemed suppliers for VAT purposes. Accordingly, platforms will be required to include VAT and customs duties in the final price at checkout on behalf of sellers and consumers and remit these amounts to the tax authorities of member states, including Ireland. The rules, which will become official following consultation with the European Parliament, will take effect on July 1, 2028.