E-Invoicing & E-Reporting developments in the news in week 20/2024

Follow the latest updates on E-Invoicing and Real Time Reporting on www.vatupdate.com and the LinkedIn pages on E-Invoicing/Real Time Reporting and ViDA.

What you should remember of the Ecofin meeting that took place on May 14?

During the Economic and Financial Affairs Council (ECOFIN) meeting on May 14, 2024, several key points were discussed regarding the Value Added Tax (VAT) in the digital age. Here’s what you should remember:

VAT Modernization Package:
- The Council exchanged views and made progress towards an agreement on the VAT in the digital age package.
- The package aims to tackle VAT fraud, support businesses, and promote digitalization.
- It seeks to modernize reporting obligations for VAT purposes by standardizing the information submitted by taxable persons on each transaction.
- Cross-border transactions will require the use of e-invoicing to enhance the fight against VAT fraud.
- The platform economy’s challenges will be addressed by enhancing the role of platforms in collecting VAT for short-term accommodation rental or passenger transport services.
- The package also aims to simplify VAT registration across EU member states by expanding and improving existing one-stop shop systems and reverse charge mechanisms.
Outcome:
- Unfortunately, a final agreement on the VAT in the digital age proposal was not reached during this meeting. Estonia maintained its objection to using the ‘deemed supplier’ rules for the platform economy in the taxi and accommodation sectors.
Next
- Ecofin will meet again on June 21. Fingers crossed.