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Status Update: ECOFIN Meeting on June 21, 2024 – Estonia’s Stance on ViDA

  • The ECOFIN meeting on June 21, 2024, did not reach an agreement on the VAT in the Digital Age (ViDA) initiative, primarily due to Estonia’s opposition.
  • Estonia’s concerns revolve around the deemed supplier regime, arguing that it would impose financial burdens on SMEs and distort competition within their domestic market.
  • Estonia proposed a compromise of a voluntary deemed supplier regime, but it did not gain approval. The lack of consensus underscores the division among member states’ preferences.
  • Estonia emphasized the importance of tax transparency and compliance, cautioning that taxing small businesses on digital platforms could drive them into the shadow economy.
  • The future of the ViDA initiative and related tax policies within the EU remain uncertain, and further negotiations will be needed to reach a balanced resolution. Businesses should stay informed and prepared for potential changes.

Source RTCsuite

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