TITLE: EU Customs Reform, UK VAT Changes and ViDA: Deadlines Cross-Border Sellers Must Track
Deadlines and changes to track
- 14–15 September 2026: EU customs reform advanced through Parliament, and the Council’s first-reading position was published in the Official Journal as Position (EU) No 10/2026. Final signature and publication of the completed legislation are still pending.
- 1 October 2026: Qualifying domestic electricity supplies in Great Britain move temporarily from 5% VAT to 0%.
- 31 December 2026: Transitional UK VAT group refund claims for VAT incurred between 1 July 2025 and 30 June 2026 must be submitted.
- 1 January 2027: The first ViDA OSS and IOSS changes apply.
- 1 November 2026 at the latest: The EU-wide small-parcel handling fee is scheduled to apply. The amount is not yet fixed.
- 1 July 2028: EU ecommerce operators must begin using the Customs Data Hub under the new timetable.
- October 2028 at the latest: The UK plans to remove the £135 low-value import customs duty relief.
Cross-border compliance is moving quickly. This week brings major EU customs reform progress, a temporary UK electricity VAT cut, new VAT refund procedures, and a shorter runway to the first ViDA changes. Use this edition to identify the deadlines that affect your sales channels, import flows, VAT registrations, and reporting systems.
1. Prepare for the EU Customs Data Hub and platform importer rules
The European Parliament approved the Council’s position on the recast Union Customs Code on 14 September 2026. The Council’s first-reading position was published in the Official Journal on 15 September as Position (EU) No 10/2026.
The reform will repeal Regulation (EU) No 952/2013 and create:
- An EU Customs Data Hub.
- A European Union Customs Authority based in Lille, France.
- A new Trust and Check trader status.
- Updated customs responsibilities for non-EU ecommerce platforms and distance-sale operators.
- A new EU-wide handling fee for small parcels.
Operations for the new customs authority are expected from 2027. However, the final legislative signature and completed publication remain pending. Treat the current position as a confirmed direction of travel, not as the final operational rulebook.
The most important change for online sellers is responsibility. Non-EU ecommerce platforms and distance-sale operators will be treated as importers for relevant transactions. They will be responsible for customs formalities and duty payments.
The Customs Data Hub will become mandatory:
- For ecommerce operators from 1 July 2028.
- For all traders from 1 March 2034.
Trust and Check status will reward traders that share reliable data in real time. Authorised Economic Operator status will remain available.
Read the European Parliament update on the Union Customs Code and the Council’s reform announcement.
Act now if you sell through Amazon, Shopify or another platform
Review your import model before the new systems become mandatory.
Check:
- Who is currently listed as importer of record.
- Who pays customs duty and import VAT.
- Whether your platform collects VAT but leaves customs obligations with you.
- Whether your product, origin, commodity code and value data are complete.
- Whether your fulfilment partner can provide shipment-level customs records.
A UK brand using Amazon FBA in Germany, France or Spain may currently view Amazon as only a sales channel. Under the new framework, the platform or distance-sale operator may carry wider importer responsibilities. Your contracts, data flows and VAT records must reflect the actual transaction structure.
2. Apply the UK electricity VAT cut correctly
The Value Added Tax (Supplies of Domestic Electricity) Order 2026 introduces a temporary 0% VAT rate for qualifying domestic electricity supplies in Great Britain.
The rate applies from 1 October 2026 to 31 March 2027.
Northern Ireland remains at the 5% reduced rate.
Qualifying use includes:
- Domestic use in homes.
- Certain residential settings.
- Supplies within the de minimis rules.
- Non-business use by eligible charities.
The measure affects approximately 100 electricity suppliers. Businesses receiving qualifying supplies will not normally need to change their VAT returns simply because the supplier applies the new rate. However, suppliers must update billing systems, tax codes and invoice processes.
Billing periods that cross 1 October need particular care. HMRC Revenue and Customs Brief 10 (2026) explains that suppliers may determine VAT liability by the date of consumption. Meter readings are recommended.
Protect your billing records
If your business receives qualifying electricity, keep:
- The supplier invoice.
- Meter readings around 1 October.
- Evidence of domestic or qualifying use where relevant.
- Records showing how any business and non-business use was calculated.
Read the HMRC guidance on the temporary zero rate and the updated VAT Notice 701/19 on fuel and power.
3. Submit UK VAT group refund claims through the correct entity
Revenue and Customs Brief 8 (2026), published on 8 September, changes how eligible non-UK businesses in a UK VAT group claim UK VAT refunds.
Each eligible non-UK business that incurred the VAT must submit its own claim. The representative member should not automatically submit the claim on its behalf.
For the transitional period covering VAT incurred between 1 July 2025 and 30 June 2026, claims are due by 31 December 2026.
There is also a route to ask HMRC to reconsider certain claims refused since 1 January 2021. Requests must be made by 31 August 2027.
Review your group records now. Match each invoice to the entity that incurred the VAT. This will reduce rejected claims and prevent cash-flow delays.
4. Get ready for the first ViDA changes
The EU’s VAT in the Digital Age package continues its phased rollout. The first relevant OSS and IOSS changes apply from 1 January 2027.
Commission Implementing Regulation (EU) 2026/1869 sets technical rules for the VAT special schemes. The Commission also published revised OSS Guidelines on 24 July 2026.
The first phase includes:
- OSS expansion for certain B2C supplies of electricity, gas, heating and cooling energy.
- Clarification of the €10,000 threshold.
- Extended deemed-supplier rules, including the “group of four”.
- New identification requirements for VAT groups using OSS or IOSS.
- Confirmation that the SME exemption scheme cannot be used simultaneously with IOSS.
The wider Single VAT Registration reforms follow from 1 July
