European Commission publishes 2025 Work Programme, including VAT and customs initiatives

3 March 2025

The European Commission recently published its 2025 Commission Work Programme outlining  progress on the 2028 Customs Reforms, including a new EU Customs Authority and IOSS Import One-Stop Shop reform.

The proposals aim to increase duty revenue and prevent fraud by simplifying and standardising custom processes. Key VAT-related proposals include:

• Removal of the €150 customs duty exemption - This change will abolish the current exemption from customs duty for goods valued below €150. As a result, customs duty will be due on all imports into the EU, regardless of value.
• Extension of the Import One-Stop Shop (IOSS) simplification – Since 1 July 2021, the EU has allowed sellers to charge non-business customers VAT at the point of sale via IOSS, instead of paying import VAT at clearance for consignments under €150. Under the new reforms, this threshold will be removed, extending IOSS to all sales of imported goods regardless of value.
• Extension of the “deemed seller” regime - Under IOSS, all online marketplaces (OMP) such as Amazon and eBay became liable for collecting VAT as the deemed seller on all IOSS sales facilitated through their website. This means that the seller’s obligation to charge VAT is removed and instead the OMP is required to include these transactions in their own VAT reporting. By removing both the IOSS low-value threshold and customs duty exemption both set at €150, it will mean the extension of these deemed seller rules for OMPs to cover both the VAT and duty amounts owed by consumers on all sales of goods regardless of value.

For full detail on all reforms and their implementation, please visit the European Commission website