On 8 December 2022 the EU Commission published its proposals on VAT in the Digital Age. This also included additions to the deemed supply rules for the Platform Economy. The respective changes are discussed in this article.
Platform Economies
The business world is changing rapidly, and online sales models are the new normal even in traditional business sectors like passenger transportation and accommodation rental.
According to the “VAT in the Digital Age” study up to 70% of the suppliers using an online platform are not registered for VAT. Since traditional hotels and taxi operators have been obliged to charge VAT on their supplies, there is a clear and increasing VAT inequality where the new VAT in the Digital Age (ViDA) EU proposal intends to level the playing field.
Source KPMG
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