EU Tax Reforms: Progress on Withholding Tax, Setback on VAT Update due to Estonian Veto

• EU finance ministers reached preliminary agreement on law for cross-border withholding tax refund procedures
• New law will streamline tax refund systems for cross-border dividend and interest payments
• Czechia initially opposed the law but withdrew objections
• Countries with smaller capital markets can opt out if they have efficient systems
• European Parliament must review the law again due to significant amendments
• Estonia blocked VAT update, particularly opposing deemed supplier status for online platforms
• VAT package includes digital reporting and e-invoicing, needs further discussion.

Source: globalvatcompliance.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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