Digital platforms have proliferated in recent years, creating opportunities for businesses, workers and the self-employed, as well as improved access to services for consumers. But their introduction has also brought challenges in how they are treated for regulatory purposes, including in the area of taxation.
Last December, the European Commission put forward a series of measures to bring the EU’s Value-Added Tax (VAT) rules into the Digital Age. One element of this package, currently being discussed by EU Member States in the Council, aims to clarify once and for all the VAT rules that apply to short-term accommodation rentals and passenger transport services booked via online platforms, and introduce a more level playing field with traditional providers like hotels and taxis.
For our March newsletter interview, we asked Carmen Muñiz Sánchez, the responsible Head of Sector in TAXUD’s VAT Policy Unit, to help us understand why these new rules are needed specifically in the area of short-term accommodation rentals, and how they can contribute to a more dynamic hospitality sector.
Source: europa.eu
