- The platform economy pillar is part of the ViDA package and aims to address VAT rules for small businesses
- The pillar seeks to shift VAT liability to platforms and level the playing field between online and traditional businesses
- Measures include deeming provisions for accommodation and transport sectors
- Short-term rental of accommodation and passenger transport services will be taxed under specific criteria set by EU Member States
- EU Member States can opt out for a period of 10 years for suppliers using the new special scheme for SMEs
- Deemed supply from supplier to platform will be VAT exempt without recovery entitlement
- Deeming supply rule does not apply if supplier provides VAT identification number
- Special scheme for tour operators cannot be applied if platform is deemed supplier
- Place of supply of facilitation services will be taxable at the place of the underlying service
Source: www2.deloitte.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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