VIDA package approved by EU Council
5 November 2024
At the meeting of the ECOFIN Council of 5 November 2024, agreement was reached on the VAT in the Digital Age package (see MIT News 8 December 2022).
After nearly two years of negotiations, agreement was reached on a compromise proposal which addresses:
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, where the platform is responsible for charging and collecting VAT to consumers on supplies made though their facility by certain suppliers (e.g. small undertakings);
- The rules allow Member States to opt out from the deemed supplier model
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
View the draft Directive here.