- The ECOFIN meeting on June 21, 2024, did not reach an agreement on the VAT in the Digital Age (ViDA) initiative, primarily due to Estonia’s opposition.
- Estonia’s concerns revolve around the deemed supplier regime, arguing that it would impose financial burdens on SMEs and distort competition within their domestic market.
- Estonia proposed a compromise of a voluntary deemed supplier regime, but it did not gain approval. The lack of consensus underscores the division among member states’ preferences.
- Estonia emphasized the importance of tax transparency and compliance, cautioning that taxing small businesses on digital platforms could drive them into the shadow economy.
- The future of the ViDA initiative and related tax policies within the EU remain uncertain, and further negotiations will be needed to reach a balanced resolution. Businesses should stay informed and prepared for potential changes.
Source RTCsuite
See also
Click on the logo to visit the website
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
