DIGITAL - Council greenlights the VAT in the Digital Age package!

Last week, the Economic and Financial AffLast week, the Economic and Financial Affairs Council approved the "VAT in the Digital Age" package, aiming to streamline VAT processes, reduce fraud, and support digitalisation across the EU.

date: 13/11/2024

Key measures include:

Digital VAT Reporting: From 2030, a real-time digital reporting system will be set up for VAT purposes through eInvoices. Businesses will issue eInvoices for cross-border business-to-business transactions and automatically report the data to their tax administration.
VAT for the platform economy: Under the new rules, platforms providing short-term rentals or passenger services will collect VAT where individual providers don’t, closing VAT gaps and ensuring fair competition.
One-stop shop for VAT registration: The new rules will extend the scope of the existing one-stop shops to business-to-consumer sales of certain items conducted within a member state other than their own. Businesses will be able to fulfil VAT obligations via a single portal.

The package is crucial for the EU's digital transition and competitiveness. The text will now return to the European Parliament for reapproval before formal adoption by the Council. It will then be published in the EU’s Official Journal and enter into force.

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