Regulatory updates - EU

On June 27, 2025, the EU Council announced its agreement on a partial negotiating mandate for a significant customs reform package. This initiative responds to increasing trade volumes, particularly in e-commerce, growing EU standards, and changing global trade dynamics. The reform aims to strengthen protection of the Single Market, improve duty collection efficiency, and enhance controls without creating excessive burdens for authorities or businesses.

Key elements of the proposed reform include:

• The creation of a new EU Customs Authority, a decentralized agency that will coordinate national customs authorities and manage risk at the EU level;
• The establishment of an EU Customs Data Hub, providing a central online platform where businesses can submit information once, while giving authorities real-time visibility of trade flows;
• Enhanced trader programs, including a new "trust and check traders" scheme for businesses offering maximum transparency, while maintaining the current Authorised Economic Operator (AEO) program with additional support for small and medium-sized enterprises;
• A modernized approach to e-commerce, with tailored rules and systems to address the sector's rapid growth and unique challenges.

Furthermore, the Council has also introduced clarifications to customs processes and proposed a new handling fee for small consignments sent to the EU through distance selling.

The Council will now begin negotiations with the European Parliament, though certain aspects of the reform, including the location of the new authority and tariff details, will be addressed at a later stage.

As of March 25, the ViDA package has now been published in the official journal of the European Union. The legislation within the package enters into force 20 days after the publication, on April 14. 

Starting April 14, 2025, Member States may begin introducing domestic e-invoicing obligations and no longer require approval from the European Commission. 

On March 11, 2025, the European Council provided the final stamp of approval on the ViDA proposal, fully ratifying the legislation. The core principles of ViDA remain, addressing digital reporting requirements (DRR), the treatment of VAT in the platform economy, and single VAT registration.

The message remains clear within the Union, as stated by the Polish Minister of Finance, Andrzej Domanski: “The EU’s VAT rules need to keep track of the digital transformation of our economies. This package will give the EU a competitiveness boost, help combat VAT fraud, and cut the administrative burden for businesses.”

Moving forward, the entry into force of the legislation is the 20th day following its publication in the Official Journal of the EU. Beyond this, it is expected that while the regulations within the package are directly applicable, the legislation will have to be further transposed into national law.