EU’s 2025 Work Programme: VAT, Customs, and Energy Reforms

The European Commission has published its 2025 Work Programme, which includes initiatives on VAT and Customs reform.
The programme proposes changes to the VAT Directive 2006/112/EC, focusing on taxable persons facilitating distance sales of imported goods.
The proposal suggests removing the €150 value threshold for the Import One Stop Shop (IOSS), enabling its use for all distance sales of imported goods.
The proposal mandates that online marketplaces and platforms facilitating such sales collect and remit VAT on behalf of sellers.
Simplified procedures for declaring and paying import VAT are proposed for businesses opting out of the IOSS.
The EU proposes a simplified tariff system for goods imported under B2C transactions qualifying as distance sales for VAT purposes.
The proposal recommends abolishing the €150 Customs Duty Relief Threshold, ensuring that all imported goods are subject to appropriate duties.
A comprehensive reform of the EU customs framework includes the creation of the European Union Customs Authority.
The new system would utilize advanced data analytics for import supervision, enabling smarter and more efficient customs controls.
The proposal includes revising tax rates on energy products and electricity based on environmental impact.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.