ViDA — the EU VAT in the digital age strategy — will be updated on December 7. The upcoming issue is considered to be one of the most ambitious reforms to the regime in recent decades.
Taxation professionals are expected major changes to happen in the areas of VAT registration, digital economy VAT, and digital reporting. The soon-to-be-revealed changes are expected to happen in 2025-2028.
Here is a list of likely changes that taxation specialists agree upon.
IOSS and OSS Schemes
It is expected that the One-Stop-Shop VAT returns program will be broadened to cross-border services and movement of own stock—which currently requires VAT registration for sellers using warehouses owned by e-commerce platforms and other scenarios. When it comes to the IOSS scheme, hopes are not high for a possible raise of the EUR 150 consignment threshold of the imported B2C goods. However, it is likely that the IOSS will be made mandatory for sellers and marketplaces.
Digital economy VAT
The compliance and taxation community expects some clarification on the rules and roles of the participants of the digital economy, especially when it comes to digital marketplaces. The area of sharing economy (accommodation and transport) is likely to see an extension of deemed supplier obligations.
Digital reporting and e-invoicing
Among the measures to fight VAT fraud are extended requirements for digital VAT reporting. It is expected that intra-community B2B sales will be subject to mandatory e-invoicing even when made by non-residents. However, it is not very likely that real-time reporting will be required. A several-day window is expected. There will be efforts to consolidate e-invoicing in the EU, but it is likely that domestic sales reporting rules will be left to control to the local governments. At the same time, European countries will not need to get approval from the EU authorities to adopt e-invoicing nationally — they will only be encouraged to follow the EU standards.
These are the most likely scenarios that we will hear about this week. Stay tuned — we will review the confirmed information once it reaches the public.
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