- The Committee on Economic and Monetary Affairs discussed a draft report on amending VAT rules for the digital age
- The Commission introduced the VAT in the digital age package on 8 December 2022 which includes three proposals aimed at updating VAT systems
- The proposals focus on implementing a real time digital reporting system, updating VAT rules for the platform economy, and introducing a single VAT registration for cross-EU consumer sales
- The European Parliament gave its opinion on the proposals on 22 November 2023
- The Council agreed on the package on 5 November 2024 but decided to re-consult the Parliament due to significant differences in the proposed texts
- A major issue was the deemed supplier regime which will start on a voluntary basis in July 2028 and become mandatory in January 2030
- Member States can exempt SMEs from this regime without reporting to the VAT committee
- The Council allowed more flexibility for Member States in operating their invoicing systems and reintroduced summary invoices under certain conditions
- The European Parliament and the Council proposed extending the implementation deadlines beyond the initial proposal by the Commission
Source: europarl.europa.eu
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.
