The VAT Expert Group (VEG) in the European Union is a group of experts established to advise the European Commission on value-added tax (VAT) policy and related legislative acts. Here are some key points about the VAT Expert Group:
- Purpose and Role: The VEG’s primary role is to provide insights and recommendations on VAT-related issues to support the development of EU policy and legislation. This includes discussing practical implementation challenges and proposing solutions to enhance the efficiency and effectiveness of the VAT system across member states.
- Composition: The group consists of representatives from EU member states, tax administrations, and various stakeholders, including business representatives and experts in the field of VAT. This diverse composition allows for a wide range of perspectives and expertise.
- Advisory Capacity: While the VAT Expert Group does not have decision-making authority, its recommendations can influence EU VAT policy and legislative proposals. The group engages in discussions about current VAT issues, best practices, and future developments in the VAT system.
- Focus on Modernization and Simplification: The VEG often addresses topics related to the modernization and simplification of the VAT system, including the adoption of digital technologies, compliance measures, and efforts to reduce tax fraud and evasion.
- Collaboration with Other Groups: The VAT Expert Group collaborates with other EU bodies and committees, such as the Group on the Future of VAT (GFV), to ensure a coordinated approach to VAT issues and to align efforts with broader EU tax initiatives.
Overall, the VAT Expert Group plays a crucial role in shaping VAT policy in the EU, helping to ensure that the VAT system is effective, equitable, and aligned with the needs of businesses and member states.
The EU VAT Expert met 4 times in 2024
35th meeting on March 18, 2024
- Approval of Agenda and Meeting Nature: The agenda for the 35th VAT Expert Group (VEG) meeting held on March 18, 2024, was approved. The meeting took place in person in Brussels and was not open to the public.
- Implementation of the New SME Scheme: The Commission services presented updated Explanatory Notes and the first draft of the Guide to the SME scheme, aimed at providing practical guidance for small enterprises. Members were invited to provide comments by April 22, 2024. An SME web portal and a press campaign are planned to support the implementation.
- VAT After ViDA: The group began discussions on potential areas of work post-ViDA adoption, with a report to be produced by the end of 2024. A first draft will be discussed in the next VEG meeting in June 2024.
- ViDA Package and Customs Reform Updates: The Commission provided updates on the state of play of ViDA package negotiations, emphasizing progress and remaining technical issues. The customs reform includes securing IOSS numbers, making IOSS compulsory, and removing the EUR 150 threshold.
- Miscellaneous Updates and AOB: Updates included the adoption of Commission Decision (EU) 2024/775 on VAT exemption for goods aiding Ukraine, harmonization efforts for postal data, and revisions to e-invoicing standards.
- Approval of Agenda and Meeting Nature: The agenda for the 36th VAT Expert Group (VEG) meeting held on June 6, 2024, was approved without contest. The meeting was conducted via videoconference and was not open to the public.
- Progress Update on VAT After ViDA: An informal working group presented a progress report on the future of VAT, discussing topics such as simplification, greener VAT, and technology. The final report is expected by mid-December 2024 and will be presented to the Group on the Future of VAT (GFV).
- Destruction of Goods and VAT Treatment of Donations: The Commission services discussed the current VAT treatment for the destruction and donation of goods. VEG members expressed the need for more advantageous VAT treatment or clearer guidance on donations.
- Single VAT Registration (SVR) Implementation: A first analysis of the SVR elements of the ViDA package was presented, highlighting necessary IT changes and updates to Implementing Acts and Explanatory Notes. A workshop in Helsinki at the end of June will further explore solutions for securing the IOSS identification number.
- Information Points and Miscellaneous Updates: The Commission provided updates on the ViDA package negotiations, the new SME scheme implementation, and the CESOP database.
37th meeting on October 4, 2024
- Meeting Overview: The 37th VAT Expert Group (VEG) meeting took place on October 4, 2024, via videoconference, focusing on key topics regarding the future of VAT, the evaluation of the e-commerce package, and updates on various initiatives. The agenda was approved without contest.
- Progress on VAT After ViDA: An update was provided by an informal working group on their work concerning the future of VAT, with a final report expected by December 2024 and a draft due by the end of November 2024. The group planned to meet in Brussels to finalize the report.
- E-Commerce Package Evaluation: The meeting presented e-commerce statistics for 2023, highlighting over EUR 26 billion in VAT declared through the OSS schemes and over 150,000 registered traders. While the success of the VAT e-commerce package was acknowledged, further improvements were identified and included in the ViDA package.
- ViDA Package Implementation: Following a successful seminar in Helsinki, constructive suggestions were made for implementing the Single VAT Registration (SVR) and securing the IOSS verification process at import. Significant progress under the Belgian Presidency was reported, although one Member State continued to oppose parts of the compromise text.
- Future Initiatives and Next Steps: Updates included the upcoming launch of the SME Web Portal by the end of October, ongoing discussions about customs reform related to the IOSS threshold, and the status of the Travel and Tourism Package.
38th meeting on December 13, 2024
- Approval of Agenda and Meeting Nature: The agenda for the 38th VAT Expert Group meeting held on December 13, 2024, was approved without contest, and the meeting was not open to the public.
- VEG Report on VAT after ViDA: The informal working group presented a report on modernizing and simplifying the VAT system post-ViDA, proposing key deliverables to enhance the framework, align with technology-driven business models, and integrate sustainability goals. The Commission appreciated the report and plans to present it at a future Group on the Future of VAT (GFV) meeting.
- ViDA Package and DRR Implementation: The Commission discussed preliminary views on electronic invoicing and Digital Reporting Requirements (DRR), with a Fiscalis workshop planned for April 2025 in Vienna. Members were invited to provide feedback by January 2025, and the Commission highlighted the need for cooperation between IT and tax specialists.
- Updates on Other Files: The Commission provided updates on various initiatives, including the unanimous agreement on the ViDA package at the November 2024 ECOFIN, the establishment of a Fiscalis Project Group to secure the IOSS system, and the launch of the SME Web Portal. Work on travel and tourism competitiveness and the taxation of the financial sector was also noted.
- Future Steps and Next Meeting: Members were invited to submit comments on DRR and Platform Economy elements of ViDA by January 2025. The next meeting is tentatively scheduled for March 26, 2025, with a physical format anticipated.
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