ViDA: Transforming Intra-EU VAT Taxation for Economic Growth and Security

• Intra-EU VAT harmonization accelerates economic development but makes Member States vulnerable to organized crime
• “Tax carousels” steal billions from state budgets annually and pose legal and financial threats to honest entrepreneurs
• Electronicization of settlements and real-time transaction data can combat fictitious turnover and VAT fraud
• European Commission’s “VAT in the Digital Age” proposal aims to reduce VAT gap and settlement costs for entrepreneurs
• Risks of the proposal include technological effectiveness, data security, and controversial regulations on e-invoicing and online platform trade
• ViDA project faces challenges due to lack of unanimity among EU countries, leading to postponement of implementation date
• Hungarian presidency of the EU Council prioritizes ViDA package implementation, but success of ongoing negotiations remains uncertain.

Source: podatki.gazetaprawna.pl

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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