{"id":73471,"date":"2025-06-02T11:54:09","date_gmt":"2025-06-02T09:54:09","guid":{"rendered":"https:\/\/hellotax.com\/blog\/?p=73471"},"modified":"2026-03-03T11:58:35","modified_gmt":"2026-03-03T10:58:35","slug":"ioss-changes-essential-vat-updates-for-2028","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/ioss-changes-essential-vat-updates-for-2028\/","title":{"rendered":"Essential IOSS Changes: Essential VAT Updates for 2028"},"content":{"rendered":"\r\n

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Navigating upcoming IOSS changes is crucial for online sellers operating within the European Union market. Major changes are scheduled for 2028, but actions need to be taken earlier. Understanding what’s changing can significantly impact your operations, compliance processes, and overall profitability. This article details these essential updates and offers clear, actionable steps to ensure your business remains compliant and competitive.<\/p>\r\n\r\n\r\n\r\n

1. Introduction: Preparing for VAT IOSS Changes in 2028<\/h2>\r\n\r\n\r\n\r\n

Since its inception in 2021, the Import One-Stop Shop (IOSS) has dramatically simplified VAT compliance for online sellers importing goods valued at \u20ac150 or less into the EU. As of July 2028, substantial updates will further redefine VAT responsibilities. These changes aim to enhance tax compliance and create a fairer competitive landscape, particularly targeting non-EU sellers and businesses currently using simplified procedures. Early preparation is key to adapting smoothly, avoiding disruptions, and maintaining efficient operations.<\/p>\r\n

Important note (2026):<\/strong> At the moment, hellotax does not act as an IOSS intermediary and does not offer IOSS registration as a standalone service. Our team focuses on helping sellers understand the IOSS changes, adapt their EU VAT setup, and prepare their processes so they can work smoothly with an IOSS intermediary \u2013 or plug into future services \u2013 when the time is right.<\/p>\r\n\r\n\r\n\r\n

2. What’s New with the IOSS from July 2028?<\/h2>\r\n\r\n\r\n\r\n

Abolition of the Special Arrangement Scheme<\/h3>\r\n\r\n\r\n\r\n

The existing Special Arrangement Scheme, which currently allows postal operators and couriers to collect VAT at the point of delivery for low-value imports (instead of requiring the seller to register via IOSS), will be discontinued. Sellers who currently benefit from this simplified process must now directly register for the IOSS to maintain compliance. Without this registration, sellers risk significant delays at customs and possible penalties for non-compliance.<\/span><\/p>\r\n\r\n\r\n\r\n

Increased VAT Obligations for Non-IOSS Registered Sellers<\/h3>\r\n\r\n\r\n\r\n

For sellers who choose not to register with the IOSS, the regulatory landscape will become more challenging. These businesses will now need to register separately for VAT in each EU member state where their customers reside. This process significantly increases the administrative burden, compliance costs, and complexity, making IOSS registration an attractive option for sellers wanting to simplify cross-border trade.<\/p>\r\n\r\n\r\n\r\n

Joint Liability for Customs Intermediaries<\/h3>\r\n\r\n\r\n\r\n

Perhaps the most significant change for sellers utilizing customs agents or intermediaries is the introduction of joint liability for unpaid VAT. Under the new rules, these intermediaries could be held accountable alongside sellers for any unpaid import VAT. This regulatory update will likely lead to intermediaries enforcing stricter requirements and higher costs for managing VAT processes, directly impacting sellers\u2019 overall costs and operational complexity.<\/p>\r\n\r\n\r\n\r\n

Potential Changes to the \u20ac150 Threshold<\/b><\/h3>\r\n\r\n\r\n\r\n

It\u2019s also important to stay informed about potential changes to the current <\/span>\u20ac150 VAT exemption threshold<\/b> for low-value goods. Depending on the EU’s policy direction, the \u20ac150 threshold may be removed or modified in 2028. While not confirmed, further changes such as the removal of the \u20ac150 exemption may also be considered\u2014stay informed through official EU channels.<\/span><\/p>\r\n

\ud83d\udc49 New to IOSS?<\/strong> If you’re not yet familiar with how the Import One-Stop Shop works or whether it’s the right solution for your business, check out our comprehensive guide: IOSS for Non-EU Sellers<\/strong><\/a>. It covers everything from how to register to what kind of goods qualify\u2014perfect for understanding the basics before diving into the 2028 updates.<\/p>\r\n\r\n\r\n\r\n

3. Who is Affected by These IOSS Changes?<\/h2>\r\n\r\n\r\n\r\n

The forthcoming IOSS updates impact a wide range of online sellers:<\/p>\r\n\r\n\r\n\r\n