- EU has modernized its VAT system with the “VAT in the Digital Age” initiative
- Measures include real-time digital reporting, enhanced platform responsibilities, and one-stop-shop mechanisms for VAT registration
- Focus on addressing challenges of digitalization in VAT compliance and fraud prevention
- Move towards real-time digital VAT reporting to combat VAT fraud
- Implementation dates for ViDA measures set between 2025 and 2035
- Digital e-invoicing initiative aims to provide tax authorities with real-time data on cross-border transactions
- Mandate for digital reporting system to be established by 2030 and interoperable with EU system by 2035
- ViDA package also addresses VAT compliance within the platform economy
- Aim to update VAT systems to reflect digitalization, combat VAT fraud, and ease administrative obligations for small companies and service providers.
Source: accountancyage.com
See also
- ECOFIN approved the VAT in the Digital Age (ViDA) Act – Compromise has been reached
- ViDA – Consolidated version of the EU VAT Directive 2006/112/EC once ViDA Act will be enacted
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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