Taxation of VAT on services provided through digital platforms – key challenges and planned changes.

• Development of the economy based on digital platforms
• Traditional business models are being disrupted by the popularity of digital platform purchases
• Difficulty in determining the service provider and recipient for VAT taxation on services provided through platforms
• Grey area where services provided through platforms are not taxed, giving them a competitive advantage
• ViDA project aims to address VAT taxation issues for services provided through digital platforms
• ViDA only regulates two categories of services, leaving other services provided through platforms unaffected
• ViDA introduces legal fiction where platforms are recognized as service providers for VAT purposes
• Current regulations do not fully address challenges of digital business models
• DAC 7 Directive will be implemented in Poland in July 2024 to address some issues with grey areas in taxation of services provided through platforms.

Source: crido.pl

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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