New schedule: (Other postponements can occur during the time )
Single VAT Registration & Platform Economy by July 2027
Digital Reporting Requirements & e-invoicing by July 2030
Discussions on finalizing the remaining Pillar of VAT in the Digital Age (ViDA) are postponed until October or November 2024 at the ECOFIN (EU Finance Ministers forum).
In June 2024, a last-ditch effort failed to overcome the Estonian veto on fully approving Pillar 2 of the Platform Economy. Pillars 1 (Digital Reporting & e-invoicing) and 3 (Single VAT Registration) received approval at the May ECOFIN meeting and will proceed. A Fiscalis workshop on the SVR reforms has already taken place.
(i) Digital Reporting Requirements (DRR) – These proposals are designed to update VAT reporting duties by implementing digital reporting requirements. This will standardize the data taxpayers must submit for each transaction in an electronic format to tax authorities and mandate e-invoicing for cross-border transactions.
(ii) Platform economy – The proposals aim to tackle the challenges within the platform economy by revising VAT regulations to clarify the rules on the place of supply for these transactions and to enhance the role of platforms in VAT collection when they enable the provision of short-term accommodation rentals or passenger transport services.
(iii) Single VAT registration – The proposals intend to eliminate the necessity for multiple VAT registrations across the EU by enhancing and broadening the current One-Stop Shop (OSS) / Import One-Stop Shop (IOSS) systems and applying reverse charge mechanisms, thereby reducing the circumstances that compel a taxpayer to register in multiple Member States.
The Digital Reporting Requirements (DRR) and the single VAT registration initiatives have been approved by ECOFIN. However, the platform economy proposals did not receive approval due to Estonia's veto against the 'deemed supplier' rules in the transport and accommodation sectors of the platform economy. Estonia has expressed concerns about the impact of the deemed reseller rule on small and medium-sized enterprises (SMEs) and has suggested making the platform pillar optional for Member States, allowing them to opt-in. In response, the Belgian Presidency has offered a compromise, giving Member States the choice to exempt SMEs from the deemed supplier regime. Nonetheless, Estonia continues to oppose this compromise.
Regarding ride and accommodation digital platforms, the compromise has modified the deemed supplier obligation, permitting member states to exempt SME businesses, which includes creating a database for platforms to verify traders eligible under the 2025 Special SME Scheme.
In January 2026, there will be minor modifications to the 2021 e-commerce package.
The €10,000 threshold for B2C distance selling of goods and TBE services will be applicable solely from the seller's country of establishment. There will also be an update to the tax point rules. Additionally, cross-border supplies of natural gas, heating, and cooling energy will be considered distance sales and may be reported in the One-Stop Shop (OSS) VAT return.
July 2027 – Single VAT Registration & Platform
These are now delayed until July 2027. This will allow governments and taxpayers more time to prepare IT system, plus shifts the changes away from the busy year end when many other regular updates or reforms are typically scheduled.
Platform Economy ride & accommodation sharing
Platforms offering short-term accommodation rentals and road ride-sharing services will assume the role of deemed supplier for VAT purposes, pertaining to their underlying suppliers' transactions. Consequently, they will be responsible for charging and collecting VAT on behalf of these suppliers.
Some exemptions will be introduced.
Also changes for short-term accommodation from 45 days to 30 days are expected in this industry.
The European Commission will assess the effectiveness of these measure exceptions by 1 July 2032. Additionally, travel agents will be excluded from the deemed supplier category, and similarly, platform supplies will be excluded from the Travel Operators Margin Scheme (TOMS). The record-keeping requirements for digital platforms will remain as outlined in the initial proposal.
Single VAT Registration
The expansion of the OSS return to e-commerce and the movement of own stock across EU borders will allow numerous e-commerce sellers and B2B businesses to substantially reduce their foreign VAT registrations and related costs.
For businesses not established in the EU, the member state of identification for OSS registration is the country from which goods are dispatched.
The initial proposal to exclude capital goods from the OSS extension has been withdrawn, provided that the owner is eligible for full VAT recovery.
The OSS will be expanded to include: supply and installation services; goods sold on board ships, trains, and aircraft; and the distribution of energy through systems.
Traders will be able to utilize the OSS after call-off stock withdrawal. From 1 July 2027, no new call-off stock arrangements may be initiated. For goods transferred before this date but not yet released, the existing conditions will expire on 30 June 2028.
The harmonisation of non-resident B2B domestic reverse charge rules, will proceed with modifications allowing member states certain flexibilities. Member states must apply the reverse charge when a non-resident supplier provides goods to a VAT-registered customer within the country. However, member states have the discretion to implement alternative rules for the reverse charge application, such as applying it solely when the customer is established in the member state where VAT is due. Supplies under the margin scheme and works of art are exempt from this rule and must be reported on the European Sales List (ESL).
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