- EU ministers of Finance have agreed on digitalizing the VAT system in Europe after two years of negotiations
- New rules include electronic invoicing, real-time data provision, and activities on digital platforms to combat tax fraud and support businesses
- Current system allows for fraud due to incomplete and non-real-time data, making it difficult for authorities to detect suspicious transactions
- New rules include a digital real-time reporting system for VAT via e-invoices to prevent fraud
- Many online service providers currently do not pay VAT, leading to lost revenue and unfair competition
- Platforms in the sharing economy must collect and remit VAT if service providers do not pay, ensuring tax compliance
- One-stop shop system for VAT registration allows businesses to declare and remit VAT in multiple EU countries through one tax authority in one language
Source: fiscaalvanmorgen.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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