EU: Member states agree on VAT in the digital age (ViDA) package
The text will need to be formally adopted before being published in the EU’s Official Journal and entering into effect.
The Council of the European Union (i.e., the 27 EU member states) today agreed on new measures that will bring the EU’s value added tax (VAT) rules into the digital age.
According to today’s EU release, the agreement covers three acts: a directive, a regulation, and an implementing regulation. The new rules will:
- Make VAT reporting obligations for cross-border transactions fully digital by 2030
- Require online platforms to pay VAT on short-term accommodation and passenger transport services in most cases where individual service providers do not charge VAT
- Improve and expand online VAT one-stop-shops so that businesses do not have to go through registrations for VAT in every member state in which they do business
The directive and the regulation are subject to a special legislative procedure. The text will need to be formally adopted by the Council before being published in the EU’s Official Journal and entering into effect.
Read a November 2024 report prepared by the KPMG member firm in the Netherlands that summarizes the key elements of the proposal, when they are due to take effect, and what the impact will be for businesses.