Skip links

EU VAT in the Digital Age reforms update

3 reforms: e-invoicing and digital reporting requirements (DRR); platform gig & sharing economies and e-commerce; and Single EU registration number – extension of OSS to all B2C and certain B2B

The European Commission (EC) will shortly be initiating the next rounds of its ‘VAT in the Digital Age’ reforms. Draft reforms to OSS and IOSS will be published in early 2022.

These three reforms in the Digital Age package spring from the 2020 Tax Package measures and follows the completion of the EU VAT e-commerce package on 1 July 2021. Want regular updates on these reforms? Sign-up for our free global VAT and GST news.

VAT in the Digital Age covers three strands (see below) of indirect tax policy. It is seeking to reimagine how VAT intersects with the emerging digital economy and how opportunities afforded by new technologies can improve collections, reduce compliance costs and cut the VAT Gap fraud. But whatever emerges, we have you covered at VAT Calc. Our single application tax engine and returns filing products are built on legislation, and not standard use cases with cash-sucking fiddly customs rules. So whatever the EU lands on us all being obliged to do, you will be ready to pivot to.

2022 VAT reform schedule

The EC will confirm this autumn the following schedule for the three reform strands:

  1. Following 2020/21 review and industry consultation of the three areas, Q4 2021 public consultations have started;
  2. Roadmaps and impact assessments will be provided with opportunities to comment;
  3. Q3 2022 proposed Directive amendments to enacted reforms.

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

Newsletter

Get our latest news right in your mailbox