1. VAT Expert Group 23rd meeting – 24 September 2018
The VAT e-commerce package Special arrangements for declaration and payment of import VAT when the Import One Stop Shop (IOSS) is not used Agenda item 5
VAT Expert Group
23rd meeting – 24 September 2018

2. Special arrangements for declaration and payment of import VAT if IOSS is not used
Why?
Abolition of the import exemption for consignments of a value ≤ EUR 10-22
Even with a high take-up of the IOSS, the number of imported low value consignments will be high in absolute terms
What?
MS MUST allow the use of (existing) simplified customs procedures for monthly payment based on a global declaration of import VAT (to customs)
MS MAY allow the systematic use of the standard VAT rate
The declarant must only pay VAT which has effectively been collected from the consignee
The declarant must take appropriate measures to ensure correct VAT payment by the consignee
Record keeping obligations for the declarant
Note:
Standard import declaration required for all small consignments  the volume of imports will require the recourse to simplified declarations (see Agenda Item 4)

3. Special arrangements for VAT compared with customs provisions
Monthly payment of import VAT based on a global declaration (end of the month following the import)
Article 111(3) UCC: middle of the month following the import
(COM will propose to align the VAT Directive to the provision in the UCC)
Systematic application of standard VAT rate if allowed by MS of importation
Some MS pointed out that the application of reduced VAT rates is included in National Import Systems (based on HS/CN codes) and is unproblematic from an IT point of view
Only pay VAT which has effectively been collected from the consignee
Article 220(2) UCC IA: goods in postal consignments declared ‘by any other act’: customs declaration deemed not to have been lodged if goods could not be delivered to the consignee
Article 148(3) UCC DA: for all goods sold ‘under a distance contract’: customs declaration shall be invalidated upon application by the declarant if goods have to be returned to the supplier
Declarant must take appropriate measures to ensure correct VAT payment
Article194 UCC: conditions for release for free circulation
Article 195 UCC: release for free circulation conditional upon payment or guaranteeing of the customs debt
Record keeping obligations for the declarant
Article 15 UCC: any person involved in the accomplishment of customs formalities: keep for 3 years all the requisite documents and information

4. Questions for debate
Is there a need to make the monthly global payment of VAT on imported low value consignments mandatory or do the current optional provisions for global payment of import VAT on the basis of existing customs simplifications provide sufficient flexibility for declarants of such consignments (Post; couriers; customs agents)?
Do declarants see added value in maintaining the special arrangements for VAT when the IOSS is not used, bearing in mind that:
Work on the development of a standard customs declaration with a reduced dataset is being developed for all low value consignments of a value not exceeding EUR 150?
The elements of the special arrangements seem to be at least partially covered by corresponding provisions in the UCC and its implementing or delegated acts?

5. DG TAXUD – Unit C1