The Economic and Financial Affairs Council (ECOFIN) of the EU met on 14 May 2024 to discuss changes to the EU Value Added Tax (VAT) rules as part of the VAT in the digital age (ViDA) initiative. However, the Ministers did not reach an agreement on the changes, and discussions will continue. It is expected that a compromise proposal could be achieved in the short term, as only one Member State was opposed to parts of the package related to the Platform Economy. The ViDA initiative aims to make fundamental changes to the common VAT rules across the EU with three pillars and gradual implementation dates. The three pillars are Digital Reporting Requirements (DRR), Platform Economy, and Single VAT Registration. Initially, the new rules were intended to be implemented generally in 2025, with DRR rules to apply as of 2028.
Source EY
