On 21 June, the EU finance ministers will discuss the ViDA proposal again after Estonia’s veto on 14 May. The updated proposal has three main pillars: digital reporting requirements, platforms as deemed suppliers, and single VAT registration. The goal is to make the tax system fairer and more efficient, but the ViDA’s deemed supplier and location of supplied services rules do not meet sound principles. The ViDA violates the principle of neutrality in tax policy, as it would make online platforms liable for VAT collection and remittance even when the service provider is not obligated to register for VAT.
Source Tax Foundation
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