Estonia’s Veto on EU’s VAT Reform in Digital Age Sparks International Debate

• Estonian Government vetoed the Commission’s proposed VAT reform package
• VIDA package aims to modernize VAT rules in response to digital economy
• Package includes e-invoicing rules, platform economy VAT rules, and simplified VAT registration rules
• Estonia objects to platform economy rules, specifically VAT collection by online platforms
• Finance Minister argues that VAT collection would be unfair and distort competition
• Estonia suggests a voluntary solution for countries to avoid additional costs and administrative burdens
• Estonia already has measures in place to prevent VAT evasion through platforms
• Estonia supports other parts of the package, including digital reporting and VAT registration in one place.

Source: answerconnect.cch.com

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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