Summary
- The Group on the Future of VAT (52nd meeting) and the VAT Expert Group (43rd meeting) held a joint session on 25 June 2026, with minutes published 8 July 2026. The Commission presented two final external studies — on the taxation of the financial sector and on “VAT beyond ViDA.” [vatupdate.com], [vatupdate.com]
- The financial-sector study proposes modernising and simplifying VAT rules, reducing non-deductible VAT for the sector, and reviewing the financial-services exemption alongside greater harmonisation. Participants debated updating exemptions for digital financial services, boosting fintech competitiveness, simplifying cross-border transactions, and revisiting VAT grouping and the option to tax. [vatupdate.com]
- On ViDA implementation, the group reviewed the second draft platform-economy notes and third draft DRR notes, seeking clarity on deemed-supplier rules, VAT groups, invoice rectification and real-time reporting. Written comments are open until 31 July 2026; the next (online) meeting is 19 November 2026, targeting 2027 publication. [vatupdate.com]
Article
The joint meeting of the Group on the Future of VAT (GFV) and the VAT Expert Group (VEG) on 25 June 2026 — the 52nd GFV and 43rd VEG meetings — was notably VAT-heavy, with minutes published on 8 July 2026. [vatupdate.com], [vatupdate.com]
The Commission presented the final reports of two external studies. The Study on the Taxation of the Financial Sector supports ongoing reflections on a coherent VAT framework for financial services, proposing modernisation and simplification of existing rules, measures to reduce non-deductible VAT, and a review of the financial-services exemption together with greater harmonisation of sectoral taxes. Members discussed updating the exemption for digital financial services, improving fintech competitiveness, simplifying cross-border transactions, and reviewing VAT grouping and the option to tax. [vatupdate.com]
The Study on the Challenges of VAT beyond ViDA examined future reforms in simplification, digitalisation and alignment with the circular economy — covering enhanced cross-border refunds and OSS procedures, further digitalisation of reporting, split-payment implications, and the treatment of exemptions and hidden VAT. The Commission stressed this study supports future policy initiatives rather than constituting an impact assessment or legislative proposal. [vatupdate.com]
On ViDA implementation, the meeting reviewed the second draft explanatory notes on the platform economy and the third draft on Digital Reporting Requirements (DRR). Participants welcomed progress but sought greater legal certainty, clearer terminology and more practical examples for the platform economy, while flagging DRR challenges around VAT groups, invoice rectification, interoperability and real-time reporting. Written comments may be submitted until 31 July 2026, and the next online meeting on 19 November 2026 aims to finalise the notes ahead of 2027 publication. Full coverage is on VATupdate: GFV 52nd meeting and VEG 43rd meeting, with background from the DG TAXUD GFV page. [vatupdate.com], [vatupdate.com], [taxation-c….europa.eu]
Sources
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