The Ecofin Council will discuss the Commission’s proposal “VAT in the digital age” (VIDA) on June 15 and 16, 2023.
The Swedish presidency has made progress in negotiations and will present three questions to member states this week to gauge their agreement with the goals and direction of the proposal. The upcoming Spanish presidency aims to reach an agreement on the entire proposal by the end of 2023.
The Dutch government favors digital reporting and mandatory e-invoicing for intra-community transactions, provided it reduces administrative burdens and promotes fraud prevention.
The Dutch government emphasizes the need for a sufficient implementation period to ensure that reporting systems, obligations, and e-invoicing are properly established by all parties involved.
Regarding platforms in the short-term accommodation rental and passenger transport sectors, the Dutch government supports the role of platforms in VAT collection and favors classifying platform facilitation services as electronic services rather than intermediary services. They also agree that the one-stop shop system and the reverse charge mechanism should be improved to prevent multiple VAT registrations for businesses operating in the internal market.
While all member states support the goals of the proposal, further clarification is needed before definitive judgments can be made. Implementation time is considered crucial, and there are differences in opinions on certain aspects of the proposal. However, many member states explicitly support the expansion of the one-stop shop system.
Source: fiscaalvanmorgen.nl
