Read our ViDA reform predictions. EU VAT Directive amendments for Single VAT registration, digital reporting requirements (e-invoicing) and digital platforms’ VAT role due 7 December 2022. DAC8 delayed, too.
The European Commission has confirmed that details of major reforms to the VAT regime will be published on 7 December instead of 16 November 2022. New tax goverance rules on cryptocurrencies and crypto-assets, DAC8, have also been delayed to the same date when ‘colleague commissioners‘, senior members of the European Commission, meet to confirm major EU legal proposals.
These reforms, known collectively as VAT in the Digital Age, cover three areas:
- Single VAT registration in the EU, which includes extending the One Stop-Shop to cover more cross border B2C goods & services transactions, as well as potentially certain B2B transactions.
- Digital Reporting Requirements, which is aiming to harmonise live transaction reporting, including e-invoicing, in the EU. This could include adopting Continuous Transaction Controls government preclearance invoice reporting.
- Digital Platforms and VAT, looking at extending more transaction reporting of online marketplaces’ users and sellers transactions, plus potentially extending the deemed supplier VAT obligations for the gig and sharing economies.
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 all B2C and certain B2B||Following the 1 July 2021 introduction of the One Stop-Shop (OSS), can this be extended to cover further cross-border B2C and all / any B2B transactions (e.g. movement of own stock across borders) to reduce the foreign, non-resident VAT registrations and returns burden|
|More details on Single VAT Registration in the EU|
|2. Digital Reporting Requirements; e-invoicing||What options are there to harmonise the digitisation of transaction reporting amongst the member states. The EU is looking at: Continuous Transaction Control (CTC) e-invoicing, live reporting; or Periodic Transaction Controls (PTC) invoice listings. Also if at a country, EU or hybrid-level.|
|Read more about EU Digital Reporting Requirements (DRR)|
|3. VAT treatment of the platform economy||How can EU member states adapt their tax systems to reflect the new role taken on by Electronic Interfaces - platforms and marketplaces which have enabled millions of private individuals to provide services and goods for the first time. How should the VAT Directive be modified to capture the new dynamics created in the gig and sharing economies, including imposing full deemed supplier VAT obligations on platforms as with 2021 e-commerce package for goods.|
|EU VAT Treatment of Platform Economy update|