- Parliament approved changes to VAT rules to make them fit for digital times.
- The update will require online platforms to pay VAT for services provided through them by 2030.
- This will end unfair competition between traditional and online businesses.
- Member states can exempt SMEs from this rule.
- The update will fully digitalize VAT reporting obligations for cross-border transactions by 2030.
- Businesses will issue e-invoices for cross-border business-to-business transactions and automatically report data to tax administrations.
- This will help tackle VAT fraud.
- The rules will simplify administrative burdens for businesses by beefing up online VAT one-stop-shops.
- The Commission estimates that Member States will recoup up to 11 billion euros in lost VAT revenues each year for the next 10 years.
- Businesses will save 4.1 billion euros a year over the next 10 years in compliance costs and 8.7 billion euros in registration and administrative costs over a ten-year period.
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.
