VAT in the digital age: ViDA receives a boost plus more work to be done

• On June 16, 2023, Ministers from the EU Member States discussed the ViDA legislative package and expressed support for a modern, simplified VAT system that keeps pace with digitalization.
• Concerns were raised about managing the cost of changes and realistic timelines.
• The debate focused on three main areas: digital reporting, platforms, and the extension of OSS and single registration.
• There was broad support for a common framework for e-invoicing, but some countries wanted flexibility to preserve their domestic systems.
• Platforms‘ proposal received broad support for a bigger role in collecting VAT in the sharing economy, but some countries expressed concerns about VAT neutrality, lack of ability to deduct VAT, different treatment of the same services, adverse impact on tourism, and more flexibility being provided. Some countries proposed alternative models based on information reporting by platforms.
• There was very broad support for the extension of OSS and single registration, but concerns were raised about the timeframe.

Source Eugen Trombitas

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