VAT Expert Group (VEG) Meeting 13 March 2026: Key Discussions on Platforms, Single VAT Registration and Digital Reporting under ViDA

Summary

Explanatory notes under ViDA remain work in progress, with extensive feedback from Member States on platforms (deemed supplier), Single VAT Registration (SVR) and Digital Reporting Requirements (DRR).
Operational clarity and practical examples are the main concern, notably for platform transactions, e‑invoicing flows, validation of VAT numbers, and interaction with existing VAT Directive provisions.
Testing, interoperability and consistency across Member States emerged as critical themes, especially ahead of the phased entry into force of ViDA reforms from 2027 and 2028.

Source VEG

Article

Background and context

On 13 March 2026, the VAT Expert Group (VEG) held its 42nd meeting, bringing together Commission services and VAT experts to discuss draft explanatory material linked to the VAT in the Digital Age (ViDA) reform package. The summary minutes (VEG No 136) were published by the European Commission on 20 April 2026 and reflect an intermediate stage in the policy and technical clarification process.

The discussions focused primarily on confidential draft explanatory notes that are intended to support uniform application of upcoming VAT reforms across Member States.

Platform economy: deemed supplier rules

The Commission presented the first draft Explanatory Notes on the platform economy, emphasising that these notes are collaborative and iterative, with further examples and diagrams to follow.

Key points raised by VEG members included:

The need for additional examples, particularly for chain transactions involving platforms;
Clearer distinction between the deemed supplier regime (DSR) and the Travel Agents’ Margin Scheme (TOMS), including references to Articles 28 and 28a of the VAT Directive and relevant case law (notably C‑695/20 – Fenix);
Clarification on VAT identification number validation by platforms and the possible development of a “safe harbour” approach;
Practical handling of incorrect information provided by underlying suppliers, adjustments, and declaration flows between suppliers and platforms;
Concerns about how smaller platforms will be informed and supported in meeting their obligations.

The Commission invited written feedback with scenario-based examples by 10 April 2026.

Single VAT Registration (SVR) and OSS changes

The Commission also introduced the first draft Explanatory Notes and OSS guidelines related to Single VAT Registration, addressing changes effective from 1 January 2027. It was stressed that:

The current draft covers technical updates only;
A broader redrafting will occur later, to reflect substantive ViDA changes entering into force from 1 July 2028.

Discussion points included:

The validation of VAT status, with questions raised on whether VIES on the Web should be enhanced;
The Commission reiterated that, since 2021, provision of a VAT number should generally be sufficient;
Questions on the scope of traders affected, including supplies to the so‑called “group of four” under the deemed supplier provision;
An update request on work relating to securing the Import OSS (IOSS).

Digital Reporting Requirements (DRR) and e‑invoicing

A substantial part of the meeting was dedicated to the second draft Explanatory Notes on Digital Reporting Requirements (DRR). The Commission confirmed that:

The text remains work in progress;
Some member feedback has been incorporated, while other points require further assessment;
Graphics, tables and visual explanations are still missing.

VEG members raised a wide range of practical issues, including:

The interaction between e‑invoicing and DRR, and how transmission should work in practice;
Whether Member States may impose additional invoice formats outside DRR scope;
Reporting challenges for sensitive goods, hybrid invoices, continuous supplies, and transactions without a customer VAT number;
The right of deduction where e‑invoicing obligations are not met;
Interplay with VIES reform, Article 218, Article 273, and the use of extensions;
The need for cross‑border interoperability, consistent terminology (e.g. “compliant” vs “conformant”), and extensive testing prior to entry into force.

Written comments on this second DRR draft were also requested by 10 April 2026.

Other issues and next steps

Under Any Other Business, the Commission confirmed, among others, that:

CBAM certificates are not to be treated as taxes or charges forming part of the taxable amount at import;
A possible extension of Articles 199a and 199b of the VAT Directive (reverse charge) is under assessment;
Reflections are ongoing regarding green economy VAT measures, without concrete proposals at this stage.

The next joint GFV/VEG meetings are scheduled for 25 June 2026 and 19 November 2026, with the aim of finalising explanatory notes for publication in 2027.

Conclusion

The VEG discussions clearly show that, while the ViDA architecture is set, its effective implementation will depend heavily on precise, operational guidance. The strong focus on examples, testing, consistency and interoperability confirms that e‑invoicing and digital reporting are no longer pure compliance topics, but core VAT system design issues for the post‑ViDA era.

Other Newsletters

European Commission publishes minutes from 42nd meeting of VAT Expert Group (VEG)

The European Commission’s VAT Expert Group (VEG) discussed explanatory notes for the platform economy, focusing on clarifying chain transactions, supplier VAT validation, and distinctions between deemed supplier regimes and tour operator margin schemes.
Draft guidelines for Single VAT Registration (SVR) under the One-Stop-Shop (OSS) were introduced, covering technical updates for January 1, 2027, with a comprehensive review planned before major changes in July 2028.
Discussions on Digital Reporting Requirements (DRR) emphasized the ongoing nature of the work, with key points addressing the interaction of e-invoicing and DRR, clarification of e-invoice transmission, and other reporting specifics.

Source EY

Briefing documents and Podcasts:

See also

Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE