CFE Opinion Statement on the EU Commission VAT in the Digital Age Consultation

CFE Tax Advisers Europe issued an Opinion Statement on the EU VAT in the Digital Age Consultation on 5 May 2022.

On Digital Reporting Requirements, the CFE is of the view that if Member States will be required to implement such measures, it is highly desirable that the systems should be implemented in so far as possible in a harmonised manner, and in a manner that seeks to minimise the burdens on businesses and in particular SMEs.

On the Platform Economy, whilst there may be sectors where it is reasonable to have a presumption that everyone using a platform to sell goods and services is acting as a taxable person, this should be rebuttable. Furthermore, CFE is of the view that if one is considered a taxable person, one should have the right of recovery of input VAT. The volume of VAT registrations which may flow from such a rule should also be considered, in terms of compliance and oversight burdens for tax administrations.

On the Single VAT registration, CFE is of the view that the OSS should be extended to supplies with installation with the final consumer and in chain supplies where extending it would be desirable. CFE is of the view that the IOSS should also be extended as the current financial threshold significantly limits the utility of the system.

Click here to read the full opinion statement.