- Fiscalis Project Group on E-Invoicing: The Fiscalis Project Group FPG/043, led by the Danish Tax Administration, aims to establish common knowledge and understanding of digital reporting solutions in Member States. The project started in May 2024 and will last one year, with the next meeting scheduled for October 31, 2024, in Greece.
- E-Commerce Package Evaluation: The 2023 e-commerce statistics showed over EUR 26 billion of VAT declared via the three OSS schemes, with more than 150,000 traders registered. While the VAT e-commerce package has been successful, the Commission recognized the need for improvements included in the VAT in the Digital Age (ViDA) package.
- Single VAT Registration (SVR) and IOSS Implementation: A seminar in Helsinki discussed the implementation of SVR and securing the IOSS verification process. The Commission proposed setting up a project group to assess feasibility and pilot potential solutions, with strong support from delegates.
- SME Scheme and Web Portal: The SME Web Portal, modeled on the OSS Web Portal, will launch by the end of October 2024. It will provide information on national VAT rules for SMEs and include a simulator for cross-border exemption eligibility. Member States will provide threshold information starting November 2024.
- VAT Part of Customs Reform: The Commission discussed the state of play regarding the removal of the EUR 150 threshold for IOSS and special arrangements. The Hungarian Presidency is working on aligning customs reform with IOSS changes, emphasizing the need to secure IOSS use before extending its scope.
Links
- Agenda 46th GFV meeting – 09-10-2024
- Presentation – VAT e-commerce 2023 statistics
- Presentation – DRR and einvoicing state of play
- GFV 138 – E-commerce package evaluation – OSS-IOSS statistics 2023
- GFV 140 – Minutes 46th GFV meeting 09-10-2024
Future of VAT: Key Takeaways from the 46th Meeting of the European Commission’s Group on the Future of VAT
Brussels, 23 October 2024 – The European Commission’s Directorate-General for Taxation and Customs Union (TAXUD) recently convened the 46th meeting of the Group on the Future of VAT (GFV) on 9 October 2024. This meeting, held via videoconference, addressed significant developments and ongoing projects in the realm of Value Added Tax (VAT) in the European Union.
Welcome and Agenda Approval
The meeting commenced with a warm welcome from the Chair, followed by the swift approval of the agenda (document taxud.c.1(2024)7926020), which was neither contested nor discussed by the participants.
Fiscalis Project Group on E-Invoicing and Digital Reporting
A notable highlight was the presentation on the Fiscalis Project Group (FPG/043) by the Danish Tax Administration. The project, initiated in May 2024 with a one-year duration, aims to establish a unified understanding of various digital reporting solutions implemented at the domestic level across member states. The next physical meeting is scheduled for 31 October 2024 in Greece.
Evaluation of the E-Commerce Package
The meeting reviewed the 2023 e-commerce statistics, revealing that over EUR 26 billion of VAT was declared through the three OSS schemes. The data underscored the popularity of e-commerce simplifications among traders and the success of the VAT e-commerce package in modernizing VAT collection on e-commerce transactions.
ViDA Package Implementation
Discussions also covered the Single VAT Registration (SVR) and Import One-Stop Shop (IOSS) verification process, following a workshop in Helsinki in June 2024. The meeting highlighted the importance of collaboration among tax, customs authorities, and business representatives. The Commission proposed setting up a project group to assess the feasibility of potential improvements.
Updates on ViDA, SME Scheme, and Travel and Tourism Package
The Commission services reported on progress under the Belgian Presidency regarding the ViDA package, with an agreement expected soon. The SME Web Portal, set to launch by the end of October 2024, will provide information on national VAT rules and a simulator for cross-border exemption eligibility.
The Travel and Tourism Package, stemming from the 2020 Tax Action Plan, is currently paused to prioritize other initiatives such as ViDA. The new Commission will decide on its future.
VAT Part of the Customs Reform
The meeting also addressed the VAT proposal amending the VAT Directive concerning the removal of the EUR 150 threshold for IOSS. Member States expressed broad support but emphasized the need for alignment with the customs reform.
Taxation of the Financial Sector
The Commission services provided an update on the ongoing study on the taxation of the financial sector, expected to conclude by the end of 2025. This study aims to develop a coherent tax framework for the EU’s financial sector, encompassing VAT and other sectoral taxes.
Conclusion
The meeting concluded with a discussion on the next steps, including a tentative date for the next meeting on 2 December 2024. The Commission services thanked the delegates for their participation and fruitful discussions.
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