Enhanced enforcement of VAT rules on non-resident digital economy businesses

• Non-resident digital economy businesses must register for, collect, and remit VAT if they sell electronically supplied services, sell imported goods valued at less than €150 to final consumers in the EU, sell goods within the EU to final consumers in the EU, or act as a platform facilitating these transactions.
• Live-streamed events will also be subject to these requirements starting from 1 January 2025. Some EU Member States may require non-EU businesses providing any type of services to final consumers in their jurisdiction to comply with their VAT requirements.
• EU payment service providers will be required to transmit information on cross-border payments and the payee to the administrations of the Member States effective from 1 January 2024.
• The information will be centralized in a European database called CESOP and made available to anti-VAT fraud experts of Member States via a network called Eurofisc. The reporting obligation will occur quarterly, starting from Q1 2024.

Source KPMG

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