It’s official – The European Commission (EC) has announced their proposed changes to the EU VAT Regime for VAT in the Digital Age, which significantly impacts eCommerce and SMEs.
On 8 December 2022, The European Commission (EC) announced one of the most significant changes to the EU VAT regime in decades. These changes all relate to VAT in the Digital Age. The EC expects these reforms to raise billions in taxes while simultaneously adapting the old regime’s VAT requirements to fit a fast-evolving digital economy.
The three game-changing reform pillars
- Real-time digital reporting and e-invoicing
- Mandatory Intra-Community Supplies (ICS) e-invoicing.
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- Mandatory B2B Intra-Community Digital Reporting Requirement (DRR).
- New VAT rules for travel and accommodation
- Single VAT registration across the EU
Source: vatit.com
