ViDA Legislative Package: State of Play and Recent Progress
The European Commission services recently provided a concise update on the ongoing negotiations within the Council regarding the VAT in the Digital Age (ViDA) legislative package. Let’s delve into the key points:
Background and Negotiations Timeline
- Belgian Presidency: Negotiations resumed in January 2024 under the Belgian Presidency. Three crucial meetings have taken place so far:
- 18 January 2024: Discussion on Digital Reporting Requirements (DRR)
- 8 March 2024: Further deliberations on DRR
- 9 February 2024: Joint VAT and Customs Council meeting focusing on the Single VAT Registration (SVR) component of the package.
Current Status and Challenges
- ViDA Package: While considerable progress has been made, the ViDA package still requires some technical fine-tuning.
- SVR Volet Agreement: The Spanish Presidency’s progress report for the 8 December 2023 ECOFIN revealed that an agreement had been reached for the SVR volet of the package (excluding the IOSS elements related to the ongoing Customs Union Reform).
- Remaining Challenges:
- DRR and Platform Economy: The main challenges lie in the DRR and Platform Economy aspects of the package.
- Technical Issues: Specific concerns raised by members include:
- Convergence of Domestic Regimes: Ensuring consistency across different national VAT regimes.
- Reporting Deadlines and Taxable Events: Clarifying reporting timelines and taxable events.
- Customer Reporting Requirements: Addressing requirements for reporting by customers.
- Use of Reported Data: Defining the purpose and utilization of the data reported.
- Clearance of Invoices: Streamlining invoice clearance processes.
- E-Invoicing and Reverse Charge: Ensuring smooth implementation of e-invoicing and reverse charge mechanisms.
- VAT Exemption Code List: Including relevant items in the VAT exemption code list.
- Interoperability: Ensuring compatibility between existing national reporting systems and the EU-harmonized DRR system.
Belgian Presidency’s Priorities
- ViDA Priority: The Belgian Presidency considers ViDA a top priority.
- Agreement Anticipation: The Presidency expects that the package will be agreed upon during their term, either at the May or June ECOFIN.
- Upcoming Council Meeting: The next Council meeting is scheduled for 25 March 2024, focusing on the Platform Economy and SVR.
Conclusion
The ViDA legislative package remains a critical area of focus, and the concerns and remarks raised by the VAT Expert Group (VEG) are being duly considered. As negotiations continue, stakeholders eagerly await a comprehensive resolution that balances technical precision with practical implementation.
Source VAT Expert Group will produce a report on ”VAT after ViDA – Exchange of views”
Disclaimer: This article provides a summary of recent developments and does not constitute legal advice. For official updates, refer to the European Commission’s official communications.
