Quick-fire VAT and Ecommerce news from around the world to help you stay up-to-date with the market.
New thresholds for Italian Import VAT Violations
Italy has raised the threshold at which not paying Import VAT becomes a criminal offence from EUR 10,000 to EUR 100,000. The threshold for customs duties remains at EUR 10,000.
The sanctions framework and criminal smuggling penalties have also been updated. Under the updated sanctions framework, administrative fines now range from 100% to 200% of the unpaid import VAT amount. The more serious the circumstance, the harsher the penalty. The Criminal Smuggling Penalties are now:
- – Unpaid customs duties: Fines from EUR 50,000 to EUR 100,000
- – Other border rights (e.g. import VAT): Fines from EUR 200,000 to EUR 500,000
- – Potential imprisonment for up to 3 years
Flexible Input VAT Deductions in Denmark
From the 1st of July 2025, VAT deductions in Denmark can be claimed up to 6 months after the supplier’s invoice date. You no longer have to reverse deduct in earlier VAT returns.
To use flexible deductions, you have to use the same method for a whole reporting period. For example, you can claim after purchase approval, but you have to do it for all supplier invoices within that period. Swapping methods halfway through a period might result in charges or penalties.
This rule currently doesn’t apply to deductions on foreign purchases (reverse charge). However, clarification is expected later this year.
Amazon.nl a compulsory for Amazon FBA Pan-EU
Sellers using Amazon’s Pan-European FBA program must now have active listings on Amazon’s storefront in the Netherlands, Amazon.nl. This rule applies to all sellers – new and existing. Existing ASINs must now be included on Amazon.nl and new ASINs must be listed in all 5 countries at launch.
AliExpress expands with European Fulfilment Service
AliExpress has announced its new fulfilment service, Local+, with the launch of 10 new warehouses in Europe, including in the UK, Spain and Germany. Sellers using Local+ will receive a fast-shipping badge on their profiles, and products will be shipped within 7 days from local hubs. Returns will be handled directly by AliExpress.
It’s likely that Local+ is designed to help the platform compete with competitors Shein, Temu and Amazon, though that won’t be the only reason. Proposed EU VAT reforms would end duty-free imports and add a EUR2 levy on non-EU shipments.
Romanian VAT Rate Changes
Romania is shifting towards a simplified two-rate VAT system by aligning reduced rates a 11% whilst maintaining the standard rate at 19%. There are proposals to increase the standard rate to 21% next year, though whether they will make it to law is still up for debate.
The changes to the reduced rate will come into effect from August 1st 2025. Both the 5% and 9% rates are being raised to 11%, which will affect categories like:
- – Basic foods
- – Some transport services
- – Hotel accommodation
- – Water supplies
New Marketplace EPR Responsibilities in Italy for Online Marketplaces
In Italy, online marketplaces now share the responsibility for EPR (Extended Producer Responsibility) compliance with third-party sellers. A new ‘pay on behalf’ system sees marketplaces collect and pay environmental fees on the seller’s behalf. This applies to packaging, batteries, electronics and textiles.
The rules introduce three main requirements:
- – Marketplaces must have agreements with national recycling schemes
- – Unregistered sellers may face removal from platforms
- – A National Register of Producers now includes both marketplaces and sellers
