- The Belgian Presidency will attempt to reach an agreement on the VAT in the digital age (ViDA) package during the next ECOFIN meeting on 21 June.
- An agreement was not reached in the last ECOFIN meeting on 14 May due to Estonia’s concerns about the new deemed supplier regime for digital platforms (Pillar Three of the reform).
- EU Finance Ministers agreed on the other two Pillars of the reform (Digital Reporting Requirements and Single VAT registration), but these will only pass if a compromise is reached with Estonia on the third Pillar.
- The Belgian Presidency has already addressed some concerns by allowing Member States to prevent the deemed supplier regime from applying to SMEs.
- Estonia wants Member States to opt in to the deemed supplier regime instead of excluding SMEs.
- A new compromise proposal discussed on 11 June includes an option for Member States to check SME status via an online database and ensures the deemed supplier provision does not add undue administrative burden.
- These efforts may still not be enough to convince Estonia.
- Bilateral talks between the Belgian Presidency and other countries are ongoing.
- During the ECOFIN meeting, Ministers will also discuss the implementation of the Recovery and Resilience Facility (RRF) and the economic and financial impact of Russia’s aggression against Ukraine.
- The Commission will present the 2024 European Semester Spring Package.
- Ministers will approve a report to the European Council on tax issues and conclusions on the progress achieved by the Code of Conduct Group during the Belgian Presidency.
Source: etaf.tax
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.
