- EU ministers of Finance have agreed on digitalizing the VAT system in Europe after two years of negotiations
- New rules include electronic invoicing, real-time data provision, and activities on digital platforms to combat tax fraud and support businesses
- Current system allows for fraud due to incomplete and non-real-time data submission to national tax authorities
- New rules include digital real-time reporting system for VAT via e-invoices to prevent fraud
- Many online service providers currently do not pay VAT, leading to lost revenue and unfair competition
- Platform economy players must collect and remit VAT if service providers do not pay, with VAT collected directly from customers
- More flexibility for member states in defining short-term accommodation rental for tax purposes and exempting small and medium enterprises from rules
- Introduction of a one-stop shop system for VAT registration for businesses selling products and services in multiple EU countries
Source: accountancyvanmorgen.nl
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.
