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Estonia Blocks EU VAT Plan for Digital Platforms, Citing Unfair Tax Burden on Small Businesses

  • Estonia vetoed EU plan to add VAT on digital platforms
  • Proposal aimed to make platform services register to pay VAT
  • Could have increased cost of online rental and ridesharing by 25%
  • Estonia’s Tax Board to compare platform data against tax returns
  • Majority of platform users in Estonia have turnover under €40,000
  • Government sees proposal as a tax on small and medium-sized enterprises
  • Estonia believes tax authorities can already identify VAT evasion
  • Bolt also opposes changes, citing impact on small businesses
  • EU politicians aim to reach agreement by end of June
  • Estonia supports other parts of the package, including digital reporting and VAT registration in one place.

Source: news.err.ee

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.

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