Agreement reached on the VAT in the Digital Age package
Agreement reached on the VAT in the Digital Age package
After two years of negotiations among Member States, an agreement on the VAT in the Digital Age package was finally reached at the ECOFIN Council meeting on 5th November 2024.
The compromised proposal addresses the following:
Digital Reporting Requirements
- Mandatory e-invoicing for cross border B2B supplies of goods and services together with real-time reporting of e-invoices for such transactions (replacing the current Recapitulative Statement requirement);
- the EU system should be in place in 2030 and all existing national systems should become interoperable with the EU system by 2035.
Platform Economy
- The introduction, with effect from 1 July 2028, of a 'deemed supplier' model for supplies of accommodation and passenger transport via platforms (such as Airbnb and Uber/Bolt), where the platform is responsible for charging and collecting VAT to consumers on supplies made though their facility by certain suppliers;
- The rules allow Member States to opt out from the deemed supplier model. This potential opt-out enabled the agreement on the ViDA package.
One Stop Shop for VAT registration
- The extension of the current one-stop-shop to allow businesses to fulfill their VAT obligations on B2C supplies made in other Member States via a single online portal