- The European Commission has issued proposals to amend the European Union (EU) value-added tax (VAT) system to respond to digitalization.
- They include a series of measures aimed at modernizing the VAT system and making it resilient to fraud and to address challenges in the area of VAT for the platform economy.
- Key proposals are: (i) introducing standardized Digital Reporting Requirements (DRRs) across the EU in an electronic format and imposing e-invoicing on cross-border EU transactions; (ii) addressing the challenges of the platform economy in short-term accommodation rental and passenger transport services by clarifying existing rules and enhancing the role of platforms in VAT collection; and (iii) reducing registration requirements in the EU by expanding the scope of the One Stop Shop (OSS) and use of reverse charge for business-to-business (B2B) transactions.
Source EY
