Advancing Taxation Discussion: Hungary’s Efforts to Resolve VAT in the Digital Age Dispute

• Hungary aims to advance discussion on taxation files and tackle tax evasion
• Hungary needs to persuade Estonia to lift its veto on the VAT in the Digital Age (ViDA) package
• During the ECOFIN meeting, no final agreement was reached on the ViDA package
• The ViDA package includes reforms like common e-invoicing, digital reporting requirements, updated VAT rules for transport and accommodation platforms, and a single VAT registration
• Estonia opposed the deemed supplier regime for digital platforms in the ViDA package
• Estonia argued that taxing service providers on digital platforms would burden SMEs and increase competitive distortions
• Estonia proposed an opt-in clause for the deemed supplier regime
• Further negotiations are needed to reach a consensus on the ViDA proposal
• Negotiations will continue after the summer break, with Estonia seeking clarifications on VAT obligations for digital platforms

Source: etaf.tax

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.

---

---