- The rapid growth of the digital platform economy has disrupted traditional business models, creating competitive distortions and a gray market. Digital platforms blend various business models, blurring the lines between service providers and consumers, posing challenges for VAT purposes.
- The current EU VAT system does not adequately address the challenges posed by these new digital business models, necessitating reforms to close tax gaps and bring clarity to VAT obligations.
- The ViDA project aims to address VAT taxation issues for services provided via digital platforms, focusing on passenger transport and short-term rental services. ViDA treats platforms as the “service provider” if the actual provider is not VAT-registered, making platforms responsible for VAT collection and remittance.
- Challenges for platform-based services remain, despite the implementation of the DAC 7 Directive. Determining the service provider remains an unresolved issue, guided by current VAT regulations and CJEU judgments. National authorities are increasingly scrutinizing digital platforms for tax compliance.
Source Taxually
- Join the Linkedin Group on VAT/GST and E-Commerce HERE
Latest Posts in "European Union"
- Playing Music Without Required License Is a Taxable Service, Says Advocate General
- PEM Zone: Implementation Status and Legal Fragmentation of Revised Origin Rules from January 2026
- Innovative Customs Education Workshop Spurs Collaboration; Final Chance for Universities to Apply for EU Recognition
- Briefing documents & Podcasts: VAT concepts explained through ECJ/CJEU cases on Spotify
- Navigating VAT Exemptions: Recent ECJ Judgments and Their Implications for Intra-Community Transactions and Imports
