The EU Commission has published its long-awaited legislative proposals on VAT in the Digital Age (ViDA). The package has three main objectives:
modernising VAT reporting obligations: introducing digital reporting requirements which will standardise the information to be submitted electronically by taxable persons to the tax authorities - the use of e-invoicing will also be mandatory for cross-border transactions;
addressing the challenges of the platform economy: clarifying the place of supply rules and enhancing the role of the platforms themselves in the collection of VAT when they facilitate the supply of short-term accommodation rental or passenger transport services; and
introducing the single VAT registration: and also expanding the one-stop shop and import one-stop shop and reverse charge, to minimise the need for multiple VAT registrations in different member states.
The changes are expected to be phased in between 2023 and 2028. The Commission is consulting on the proposals until at least 7 February 2023.
The EU Commission has published its long-awaited legislative proposals on VAT in the Digital Age (ViDA). The package has three main objectives:
modernising VAT reporting obligations: introducing digital reporting requirements which will standardise the information to be submitted electronically by taxable persons to the tax authorities - the use of e-invoicing will also be mandatory for cross-border transactions;
addressing the challenges of the platform economy: clarifying the place of supply rules and enhancing the role of the platforms themselves in the collection of VAT when they facilitate the supply of short-term accommodation rental or passenger transport services; and
introducing the single VAT registration: and also expanding the one-stop shop and import one-stop shop and reverse charge, to minimise the need for multiple VAT registrations in different member states.
The changes are expected to be phased in between 2023 and 2028. The Commission is consulting on the proposals until at least 7 February 2023.
