EU VAT deal would give online platforms a bigger role

The EU Council reached a political agreement on November 9 to expand VAT arrangements for online imports. For Hungarian online shoppers and importing businesses, the issue is who charges and remits the tax at purchase, and how transparent the total price is.

In brief

• The import VAT one-stop shop would be expanded.
• Platforms would take greater responsibility for collecting tax.
• Formal adoption of the rules is still pending.

Higher-value orders would also be affected

The Council compromise would remove the value ceiling for the Import One Stop Shop, or IOSS, and extend the procedure to certain online sales of goods held in EU customs warehouses. The text continues to exclude excise products from this special scheme. Non-EU online platforms would be treated as deemed suppliers responsible for collecting and remitting the relevant VAT.

The EU's explanation of VAT describes a consumption tax ultimately borne by the customer, with businesses collecting and passing it on. Changing who collects it therefore does not create a VAT exemption, and the agreement provides no basis for calculating a discount on a particular order.

In the announcement, Irish finance minister Simon Harris called the agreement the “final building block” of the customs overhaul. The European Parliament must still be consulted before formal Council adoption. The intended application date is July 1, 2028; the draft also includes a transitional provision in case the relevant IT system is delayed.

What should shoppers look for?

The VAT measures need to be read alongside the broader customs reform, but VAT and customs duties are separate charges. A useful check for Hungarian shoppers is which taxes, shipping costs and other fees the checkout total includes. This agreement does not establish how an individual seller actually invoices customers.

Our coverage of the EU budget negotiations provides related institutional context, while seasonal food inspections concern another current issue in Hungarian trade. The next substantive developments will be parliamentary consultation and final Council adoption of the VAT package. Until then, the political agreement remains the reference point.