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Press Release: Commission welcomes general approach on its proposals on VAT in the digital age

Commission welcomes general approach on its proposals on VAT in the digital age

The Commission welcomes the general approach announced today by the Council on its proposals on VAT in the digital age. By embracing and promoting digitalisation, this package makes the EU VAT system more business-friendly and resilient to fraud. The new rules also mark the first step in addressing the challenges posed by the development of the platform economy and help to ensure a level playing field between online and traditional short-term hosting and transport services.

Valdis Dombrovskis, Executive Vice-President for an economy that works for people, said: “Today’s general approach marks a major step forward in updating our VAT rules to reflect new digital realities and simplifying the tax landscape. By streamlining and modernising VAT processes, we significantly reduce the administrative burden on businesses, especially SMEs, and allow them to focus on growth rather than red tape. This package demonstrates our commitment to building a fairer and more efficient digital economy that works for businesses and consumers alike.”

Commissioner Paolo Gentiloni, in charge of the economy, said: “Today’s agreement makes life easier for taxpayers, fights fraud and promotes fair competition. EU Member States still lose €61 billion in VAT every year – unified e-invoicing is a key step in reducing this. A single VAT registration will reduce the administrative burden on European businesses, helping SMEs to grow across borders. Finally, the deemed provider regime is essential to ensure a level playing field between the traditional and platform economies. These new VAT rules strengthen our ability to exploit the opportunities offered by digitalisation, while addressing some of its challenges, moving us towards a fairer and more competitive Europe.”

EU finance ministers are expected to adopt the proposal after a further consultation of the European Parliament. A press release is available online.

See also


Join the LinkedIn Group on VAT in the Digital Age (VIDA), click HERE


 

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