New VAT Rules on Imports: What's changing and how to prepare your company

What changes with the new VAT rules on imports?

International e-commerce has experienced unprecedented growth over the last decade. The ease of purchasing products from suppliers anywhere in the world has brought new opportunities for consumers and businesses, but also significant challenges for tax authorities. One of the biggest weaknesses in the current system is the collection of VAT on imported goods.

To correct these distortions, in July 2025, the Council of the European Union approved a directive amending VAT Directive 2006/112/EC. The new regime will apply from July 1, 2028, and promises to profoundly change the way VAT is treated on imports.

The new VAT rules for imported goods represent one of the most significant changes in the tax landscape for international e-commerce. This directive, in addition to addressing gaps in the current regime, brings with it new operational and technological requirements for Portuguese companies and marketplaces that sell or import goods outside the EU.

Why are these new rules being introduced?

For years, VAT exemptions for low-value imports (up to €150) have allowed many non-European operators to sell to Europe without applying the same tax framework as local companies. This practice has created market distortions and unfair competition, penalizing Portuguese companies that comply with their tax obligations from the first sale.

The new directive eliminates these inequalities and promotes greater transparency and tax fairness by creating a common model for all transactions, regardless of origin or value.

What are the main changes?

The new directive was published in the Official Journal of the European Union on July 25, 2025, and will formally enter into force on August 14, 2025. However, the European legislator has opted for a transition period of almost three years, allowing companies, customs authorities, and marketplaces to adapt their processes and systems. The main changes concern:

• The end of the €150 limit for using the IOSS (Import One-Stop Shop).
• The direct responsibility of suppliers and platforms for collecting and delivering VAT.
• The standardization of the tax treatment of all orders, regardless of value.

In practice, this is a reinforcement of the existing one-stop shop model for intra-Community transactions (OSS), now extended to e-commerce originating in third countries.

The end of the exemption up to 150 €

One of the pillars of the change is the elimination of the exemption that existed for imports up to 150€ under the IOSS regime. Until now, many international platforms exploited this rule to sell large volumes of low-value products without charging VAT. The consequence was twofold:

1. Loss of tax revenue for Member States.
2. Unfair competition for European companies that apply VAT on all sales.

From July 1, 2028, any order - whether 5€ or 5000 € - must include VAT charged at the point of sale, provided that the supplier is registered with the IOSS.

Impacts for Portuguese importing companies

Portuguese companies that import goods for resale will have to carefully assess the impacts.

1. Greater tax fairness

Until now, Portuguese importers competed with Asian sellers who were able to place goods on the domestic market without VAT or with undervalued prices. With the new system, the playing field is leveled: everyone pays VAT from the first sale.

2. Simplified customs procedures

With VAT settled at the point of sale and reported via IOSS, customs procedures are simplified. This can reduce delays in the entry of goods and administrative costs.

3. Greater cost transparency

Imports now have a clearer tax structure. Companies will know, at the time of purchase, the final price including VAT, eliminating uncertainty about subsequent settlements.

4. Need for technological integration

For those who import directly from international platforms, it will be essential to check whether suppliers are registered with IOSS. Otherwise, the risk of additional costs and delays remains.

Practical points for Portuguese companies

• Check suppliers: ensure that non-EU partners are registered with IOSS.
• Review contracts: include clauses ensuring that VAT is paid at source, avoiding unexpected charges.
• Train teams: tax and logistics departments must understand the new rules.
• Integrate systems: adapt billing and ERP software to handle information from IOSS.
• Seize the opportunity: communicating to the market that the company is tax compliant can be a competitive advantage.

What changes for Marketplaces?

Marketplaces that act as intermediaries in the sale of imported goods are now considered directly responsible for collecting and delivering VAT, which implies:

1. Increased fiscal responsibility

They will now be directly responsible for collecting and paying VAT on behalf of sellers who use their platforms. This implies the strengthening of invoicing and compliance systems, the need to register with the IOSS, and more rigorous auditing and reporting processes.

2. Pressure on informal sellers

Many small sellers outside the EU who used Marketplaces to sell to Europe may have to leave the market, unable to meet the new tax requirements.

3. Fairer competition

Large Marketplaces will have to ensure that all sellers, regardless of origin, apply VAT correctly. This protects European operators and eliminates some of the unfair competition.

Practical points for marketplaces

• Implement automatic VAT collection systems by destination country.
• Centralize the submission of declarations via IOSS.
• Strengthen compliance mechanisms with external sellers.
• Inform consumers that the final price already includes VAT and that there will be no surprise costs.
• Restructure commissions to cover the additional administrative costs associated with VAT.

Challenges expected in the coming years

Despite the advantages of the new regime, its implementation involves technical and operational challenges:

• Technological complexity in adapting e-commerce systems.
• Administrative costs for small non-EU sellers.
• Risk of operators fleeing to informal and unregulated channels.
• Dependence on international cooperation to ensure that suppliers in third countries comply with the rules.

The new VAT rules for sales of imported goods represent a structural change in European e-commerce. For Portuguese companies, the impact could be positive, reducing unfair competition and bringing greater transparency to the market. For marketplaces, the challenge will be greater: adapting systems, assuming tax responsibilities, and ensuring that all sellers comply with the same rules.

Companies that begin this transition early will be better prepared to avoid risks and turn tax compliance into a factor of trust and competitiveness.

The role of iNovaDigital in the technological adaptation of companies

The transition to this new tax model will not only be an administrative issue, it is a structural change that requires strategic vision and technological capacity. iNovaDigital is prepared to support companies that need:

• Implementation of B2B and B2C e-commerce platforms tailored to the needs of each company.
• Complex integrations and system unification, ensuring that tax, financial, and logistics management is aligned and automated.
• Design and implementation of technological solutions that ensure compliance, efficiency, and competitiveness.

We are prepared to support your company in analyzing the specific situation, designing the most appropriate solutions, and implementing models that meet regulatory requirements while leveraging opportunities for digital growth.

Prepare today for tomorrow's competitiveness

The implementation deadline of July 2028 offers some leeway, but the ideal time to act is now. Companies that invest now in adapting their systems will be at an advantage when the new rules come into force.

In practice, these changes represent a new era of tax fairness, but also an opportunity to modernize operations, automate processes, and strengthen your business's online presence.

Is your company ready?