EDPS backs personal data guards in EU’s ViDA reform proposals
The EU’s independent European Data Protection Supervisor (EDPS) has provided an initial positive review of the European Commission’s VAT in the Digital Age reforms. In particular the Digital Reporting Requirements for the delivery of transaction data on B2B invoices to the European Commission from 2028.
The EDPS reviews the processing of personal data by the EU, including the Commission. It aims to keep individuals data secure, and help minimise risks.
It’s main concern was around the exchange of personal data (individuals’ names, addresses and similar person information) under the proposal that taxpayers must report transaction data to their local tax authorities within two days of the transaction. Local tax authorities will in turn forward the information to the EC which will recreate a EU central database of transaction. This will be focused on identifying VAT fraud.
EDPS approved the limits on this data in the proposal – it will only be header lever – to protect personal date with GDPR and EUDPR.
ViDA – three proposals for reforms of the EU VAT regime
In addition to the Digital Reporting Requirements, ViDA includes two other reform pillars:
- Single VAT Registration – the extension of the OSS return to more cross-border transactions from 2025; and
- Platform economy VAT obligations – ride sharing and accommodation platforms obligation to charge and collect VAT from 2025.
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 reforms to improve efficiency of VAT for all and reduce fraud | |
| 1. Single VAT registration in the EU; extension of OSS to B2C own stock movements | 2025 (?): Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Marketplaces deemed supplier for EU sellers | |
| EU IOSS mandated for marketplaces | |
| EU tackles misuse of IOSS numbers | |
| Quick fixes to existing e-commerce VAT rules | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
| 2. Digital Reporting Requirements; e-invoicing | 2030 (?): Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| E-invoices mandated intra-community supplies 2028 | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| 2014 EU legal permissions for e-invoicing lifted | |
| 3. VAT treatment of the platform economy | 2026 (?): Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
