EU Council Approves Simplified VAT Rules for Online Sales as Part of Broader Customs Reform

The Council of the European Union has approved new rules to simplify Value Added Tax (VAT) for online sales, forming part of a wider EU customs reform package. These measures aim to streamline global trade, particularly in e-commerce, enhance the efficiency of customs duty and tax collection, and strengthen controls on non-compliant goods. The new framework clarifies that non-EU suppliers or facilitators are considered the importers for distance sales directly to EU consumers, making them responsible for customs obligations and duty collection. The reform also eliminates the historical threshold that allowed goods under €150 to enter the EU without customs duties. The new rules are set to be applied from July 1, 2028.