- The ViDA package, an initiative to modernize the EU VAT system, aims to combat fraud and adapt to the digital and platform economy.
- The package consists of three main components: Digital Reporting Requirements, new Platform Economy rules, and expanded Single VAT Registration.
- It is projected to generate between EUR 172 billion to EUR 214 billion in net benefits over a decade, while also saving businesses EUR 51 billion in costs.
- Key changes include the introduction of real-time digital reporting for cross-border trade and making e-invoicing the default method, which is expected to reduce VAT fraud by up to EUR 11 billion annually.
- The new rules also make digital platforms responsible for collecting and remitting VAT in the passenger transport and short-term accommodation sectors.
Source: taxation-customs.ec.europa.eu
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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