EU Agreement: Online Platforms to Collect and Remit VAT – Boosting Digitalization and Fighting Fraud

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

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.