The intentions of the European Commission to bring Union-wide changes have been a subject of discussions for a long time. Finally, at the end of last year, the European Commission brought some clarity with an outline of the proposed EU VAT regime changes connected to the VAT in the Digital Age direction.
A quick reminder: VAT in the Digital Age stands for VAT regulations aimed at e-commerce and SMEs operating in the digital environment. Currently, the VAT regime overlooks some of the areas of mostly online economic activities. It is expected that European countries will collect more taxes with the help of a fairer VAT regime for all businesses — traditional and digital alike. The forecasted increase in taxes is estimated at approx. €18 billion.
Up until now, the upcoming changes were based on expert predictions and public discussions or consultations within the EU institutions. The most recent announcements from the European Commission have brought clarity to three areas of the VAT regime updates. Among them are digital reporting, VAT registration, and platform economy for hospitality changes.
Source: 1stopvat.com
