EU agreement on VAT in digital era: political consensus reached, formal adoption pending

• EU member states have reached political agreement on VAT rules for the digital age
• The agreement includes making VAT reporting obligations for cross-border transactions fully digital by 2030
• Online platforms will be required to pay VAT on short-term accommodation and passenger transport
• The VAT one stop shop scheme will be improved and expanded to avoid multiple registrations in different member states
• VAT entrepreneurs will issue e-invoices for cross-border transactions and report data automatically to tax authorities
• National tax authorities will share data through a new IT system to combat VAT fraud
• Platform operators will be responsible for collecting and remitting VAT in cases where service providers do not pay VAT
• The new rules aim to prevent excessive VAT registrations and expand the one-stop-shop scheme to certain products sold between businesses and consumers in different member states

Source: advocatie.nl

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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