On December 7, 2022, it is expected that the EU Commission will publish its proposals on ”VAT in the Digital Age”. This will include proposals on
- Digital Reporting Requirements (DRRs);
- The VAT Treatment of the Platform Economy; and
- The Single VAT Registration and Import One Stop Shop (IOSS).
In a countdown towards November 16, we will publish a number of interesting facts around ”VAT in the Digital Age”. This one is on the ”Platform Economy”
The development of the platform economy raises new VAT-related legal challenges. The main legal issues – potential or actual – are connected to:
- The taxable person status of the provider.
- The nature of the platforms’ facilitation services and the resulting place of supply.
- The interaction with the special VAT scheme for SMEs.
- The deduction of input VAT.
- The definition of consideration.
- Other national policies examined
- The digital economy became subject to various EU measures. Three of them are of specific relevance to the VAT treatment of transactions
in the platform economy and to the applicable reporting obligations:- VAT e-Commerce Package
- DAC7
- Record keeping obligations for, and the scope thereof, are regulated by the VAT Directive in Article 242a
See for further details: Report VAT in the Digotal Age – Executive Summary – Page 18-20
See also in this serie
Digital Reporting Requirements
- Part 1: 13 Member States require all B2G invoices to be issued and transmitted as structured e-invoices over a specific platform
- Part 2: Implementation of DRR lead to net annual benefits of about EUR 8 billion
- Part 3: Digital Reporting Requirements – What is the problem?
- Part 4: DRR Policy options – Will it be Option 4a? Partial harmonisation. An EU DRR is introduced for intra-EU transactions
- Part 5: Types and features of the EU Digital Reporting Requirement
Platform Economy
- Part 6: Platform Economy – Types of Platforms
- Part 7: Platform Economy – Scale of the platform economy – Estimated VAT revenue from digital platforms is EUR 26 billion
- Part 8: Platform Economy – Legal issues
- Part 9: Platform Economy – What is the problem?
- Part 10: Platform Economy – Policy Options
- Part 11: Platform Economy – Comparison of Policy Options
Single VAT Registration and Import One Stop Shop (IOSS)
