EU VAT Expert Group – Minutes of the 41th meeting – Explanatory Notes DRR discussed

1. Meeting Overview

First meeting of the newly appointed VEG members.
Chaired by DG TAXUD, emphasizing the group’s advisory role in VAT policy and ongoing reforms.

2. Key Agenda Points

Rules of Procedure: Revised and adopted; confidentiality obligations stressed.
Purpose & Remit: VEG acts as an advisory forum for VAT policy, not addressing national VAT disputes or individual cases.
Study on VAT Beyond ViDA: Preliminary findings presented, focusing on simplification, digitalisation, and environmental alignment. Key discussion topics included:
- AI’s role in VAT
- Circular economy and second-hand goods
- Fraud prevention through clear definitions
- VAT exemptions and hidden VAT
- Digitalisation, platforms, and cross-border VAT refunds

3. ViDA (VAT in the Digital Age) Package

Implementation Strategy: Outlined main challenges, support actions, and deadlines. Recent stakeholder dialogue discussed.
Digital Reporting Requirements: First draft explanatory notes presented (confidential). Members invited to comment; topics for clarification include invoice definitions, technical validations, and security.
Platform Economy: Update on Fiscalis workshop; ongoing work on explanatory notes for short-term accommodation and passenger transport.
Single VAT Registration (SVR) & Secure IOSS: Updates on regulatory revisions, IT implementation timelines, and pilot projects.

4. Travel Package Review

Discussion on revising the special VAT scheme for travel agents and passenger transport. Members highlighted the need for neutrality, simplification, and fair revenue distribution.

5. Incentivised IOSS

Update on the new Directive incentivizing IOSS use for distance sales of imported goods (up to €150). Non-use leads to more complex VAT obligations for suppliers.

6. Other Business

Input VAT and Carbon Border Adjustment Mechanism (CBAM): Guidance needed by January 2026 on reporting carbon-intensive imports for VAT purposes.

7. Next Meeting

On November 7, 2025, the 41th meeting of the VAT Expert Group took place.

Agenda

1. Welcome and introduction by the Director for Indirect Taxation and Tax Administration – DG TAXUD
2. VEG N° 002 REV 1: Rules of procedure of the VEG
3. VEG N° 035 REV 3: Purpose and remit of the VEG
4. Study on the Challenges of VAT Beyond ViDA – Presentation and exchange of views
5. ViDA (VAT in the Digital Age) package – Implementation
- 5.1. Implementation Strategy and Implementation Dialogue
- 5.2. VEG N° 130: 1st draft Explanatory Notes on Digital Reporting Requirements (CONFIDENTIAL)
- 5.3. Platform economy –Results of the Fiscalis workshop in Madrid (FWS/047)
- 5.4. SVR & Secure IOSS – State of play
6. VEG N° 131: Travel package – Possible elements under assessment (CONFIDENTIAL)
7. Information points
- a) Incentivised IOSS – Update
8. AOB