- The European Commission has proposed a legislative package called “VAT in the Digital Age” or “ViDa” to modernize and simplify the EU VAT system and minimize VAT fraud by adapting it to the digital age.
- The proposed measures include the option for EU Member States to impose e-invoicing as of 1 January 2024, which will become the default system for issuing invoices as of 1 January 2028; the obligation for VAT taxable persons to report transactional data for business to business intra-EU sales of goods and services within two working days, applicable as of 1 January 2028 (e-reporting); a new VAT liability for digital platforms generally facilitating B2B and B2C sales of goods and short-term accommodation rental and passenger transport, which will be required to collect and remit VAT to the State as of 1 January 2025; and the review of the scope of the current reverse-charge mechanism and One Stop Shop to cover more transactions and reduce the obligation of businesses carrying out intra-EU trade of VAT registering in Member States other than the one of establishment as of 1 January 2025 (single VAT registration within the EU).
- The proposed package will affect all businesses carrying out their activities within the EU, particularly those involved in intra-EU trade and digital platforms.
- The proposal requires unanimous approval from all EU Member States.
Source ATOZ
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
Latest Posts in "European Union"
- Roadtrip through ECJ Cases – Focus on ”Vouchers” (Art. 30a, 30b, 73a)
- Roadtrip through ECJ Cases – Focus on ”Composite supplies”
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)
- VAT Committee Clarifies Single-Purpose Vouchers and ECJ Judgment on Supply and Taxation Rules
- EU Commission Unveils Strategy for Digital VAT Reform Implementation and Timelines
