How bringing VAT into the Digital Age can help restore a level playing-field in the hospitality sector

The rise in digital platforms that facilitate short-term accommodation rentals across the EU has transformed the sector. At the same time, it has introduced challenges for Value-Added Tax (VAT) in the EU and led to a distortion of competition with traditional hotels. For this month’s interview, we asked Carmen Muñiz Sánchez, Head of Sector in DG TAXUD’s VAT Policy Unit, to help us understand why new VAT rules are needed in this area, and how the new framework can contribute to a more dynamic and competitive hospitality sector.