- Estonia lifted its blocking veto for the ViDA initiative at the ECOFIN meeting on November 5th, 2024
- The ViDA initiative aims to modernize the VAT system in the EU for the digital economy
- The update includes Digital Reporting Requirements, Platform Economy Rules, Single EU VAT Registration, exemptions, e-invoicing standards, and the ability for EU countries to implement e-invoicing mandates without EU approval
- The ViDA proposals will go to the EU Parliament for final approval after significant changes made by ECOFIN
- Key takeaways include streamlining VAT collection, reducing administrative burdens, preventing tax evasion, and creating a level playing field across Member States
- Digital Reporting Requirements aim to reduce VAT fraud and the “VAT Gap” through electronic invoicing and automated reporting
- Platform Economy and Deemed Supplier Rule address VAT issues in the platform economy to reduce unfair competition
- Single VAT Registration extends the One Stop Shop system to minimize the need for multiple VAT registrations
- Harmonized E-invoicing Standards make electronic invoicing the default method for VAT reporting
- Special provisions and exemptions are set for sectors like short-term accommodations
Source: tradeshift.com
See also
- ECOFIN approved the VAT in the Digital Age (ViDA) Act – Compromise has been reached
- ViDA – Consolidated version of the EU VAT Directive 2006/112/EC once ViDA Act will be enacted
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.
