The proposed legislation will transpose key provisions of Council Directive (EU) 2025/516, adopted on March 11, 2025, which introduces new VAT rules designed to modernize tax administration and simplify cross-border e-commerce within the European Union.
Under EU requirements, member states must implement most of the directive’s provisions by December 30, 2026, with additional measures taking effect by June 30, 2029. The majority of the new rules are expected to apply from January 1, 2027.
The draft law aims to clarify several practical and legal issues identified since the introduction of the EU VAT e-commerce package in 2021. According to the Ministry of Finance, the reforms are intended to improve legal certainty, reduce administrative burdens, and expand the use of the One Stop Shop (OSS) system, which allows businesses to report and pay VAT for cross-border transactions through a single registration.
Among the key measures proposed are clarifications regarding transactions facilitated by electronic platforms, revised rules for calculating the €10,000 cross-border sales threshold, and confirmation that businesses registered for the Union OSS scheme must use it for all eligible transactions within the European Union.
The proposal would also establish a uniform VAT chargeability date for transactions reported under the Union and Non-Union OSS schemes, remove the requirement for businesses to provide website information when registering for OSS and Import OSS (IOSS), and extend OSS coverage to certain cross-border supplies of natural gas, electricity, heating, and cooling energy supplied to consumers.
In addition, the draft legislation would prevent small businesses benefiting from VAT exemption schemes from using the Import One Stop Shop (IOSS) for low-value imported goods, a measure aimed at reducing the risk of untaxed transactions.
Another significant change involves the planned abolition of the call-off stock simplification regime. The government argues that the regime will become unnecessary following the introduction of a new OSS-based simplification procedure for cross-border transfers of a taxpayer’s own goods between EU member states, scheduled to take effect from July 1, 2028.
The Ministry of Finance and Economy (MFiG) is responsible for preparing the legislation, with Deputy Finance Minister Jarosław Neneman overseeing the project. The government is expected to consider the proposal during the second or third quarter of 2026.
If adopted, the reforms would represent another step in the EU’s broader effort to digitalize VAT administration, harmonize compliance requirements across member states, and reduce administrative costs for businesses engaged in cross-border trade.
