- Classification of Digital Platforms: EU VAT rules classify digital platforms as deemed suppliers when they act in their own name, which affects the identification of the taxable person, taxable amount, and invoicing structure, as established in Article 28 of the VAT Directive and supported by case law.
- Operational Implications: Platforms must assess their roles based on consumer perception; if they control essential terms like pricing and cancellations, they are considered the supplier for VAT purposes, impacting their obligations regarding VAT collection and invoicing.
- Economic Reality and Compliance: The VAT in the Digital Age (ViDA) initiative reinforces the notion that economic reality dictates VAT outcomes, emphasizing the need for platforms to align contractual frameworks with customer interactions and navigate multi-jurisdictional risks effectively.
Source International Tax Review
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