- The European Commission has proposed a draft directive (ViDA) for approval at the Ecofin meeting on May 14, 2024
- The proposal includes measures for the digital economy and short-term rentals
- Challenges in applying VAT in the platform economy are addressed
- Rules for VAT collection from platforms in short-term accommodation and road transport sectors are outlined
- Neutrality of VAT should be maintained, with platforms not charging VAT if suppliers provide VAT registration number and declare intention to charge VAT
- Member states may exempt small businesses from these rules
- Short-term accommodation services should be treated similarly to hotel services
- Requirements for electronic invoicing and digital reporting are also discussed in the directive introduction
- Member states should not be required to implement real-time digital reporting for domestic transactions, except for cross-border deliveries
- Member states can continue to apply other measures to ensure proper VAT collection and prevent tax evasion
- Member states are allowed to use their own reporting tools, such as SAF-T system, in addition to real-time reporting obligations specified in the directive
Source: taxheaven.gr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
