ECON committee hears concerns on short timeframe for ViDA; suggests 2-day transaction reporting deadline within the ViDA Digital Reporting Requirements should be extended to 10 day
The European Parliament’s Committee on Economic and Monetary Affairs on 25 May listened to concerns on the short implementation timeline of 2024 to 2028 the VAT in the Digital Age reforms. Its reporteur, Olivier Chastel, Belgian MEP, called for a 1-year extension of all deadlines.
The EU Parliament only has an advisory role on any amendments to the proposal.
2-day reporting deadline and IBAN confidentiality concerns
He also suggested that the proposed 2-day reporting threshold for intra-community supplies from 2028 was unreasonable. This is of the requirements including in the Digital Reporting Requirements pillar of ViDA. He suggested 10 days instead, which chimes with other opinions that have been submitted in the recently closed public consultation.
Additionally, M Chastel recommended that the requirement for reporting of IBAN payment details with intra-community digital reporting was unreasonable level of information, with security and confidentiality risks.
The Committee on Economic and Monetary Affairs (ECON) is a committee of the European Parliament which is responsible for the regulation of financial services, the free movement of capital and payments, taxation and competition policies, oversight of the European Central Bank, and the international financial system.
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 | 2028: 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 | 2025: 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 | |
| Contact us to learn how VATCalc's single global platform for determination, reporting and e-invoicing can help you thrive with VAT in the Digital Age | |
