European Commission VAT reforms public consultation extended 20 days
The EC has stretched out the public consultation deadline of its VAT in the Digital reforms from 15 April to 5 May 2022. The public call for evidence phased completed on 17 February. The consultation seeks stakeholders’ views on whether the current VAT rules are adapted to the digital age, and on how digital technology can be used both to help Member States fight VAT fraud and to benefit businesses.
It is expected that the EC will produce proposed VAT Directive amendments in the autumn. Get our global VAT and GST free news emails, sign-up here.
3 reforms: Single VAT registration; role of platform economy; and digital and e-invoice reporting requirements
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|