The European Commission's VAT in the Digital Age amendments have received an initial favorable assessment from the EU's independent European Data Protection Supervisor (EDPS), especially the Digital Reporting Standards for delivering transaction data on B2B invoices to the European Commission starting in 2028.
The European Commission's VAT in the Digital Age reforms have received an initial positive review from the EDPS
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Author: Kristina Dosen
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Fiscal subject related
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412
Content accuracy validation date:
24.03.2023
Content accuracy validation time:
11:35h
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The EDPS examines how the EU, including the Commission, processes personal data. It attempts to minimize risks and maintain the security of personal information.
The EDPS examines how the EU, including the Commission, processes personal data. It attempts to minimize risks and maintain the security of personal information.
Its principal concern with the suggestion that taxpayers must transmit transaction data to their local tax authorities within two days of the transaction was the transfer of personal information (people's names, addresses, and other such information about specific individuals). Local tax authorities will then transmit the data to the EC, which will construct a central transaction database for the EU. Finding tax fraud is the main goal of this.
To protect personal information in accordance with GDPR and EUDPR, EDPS authorized the proposal's limits on this data, which will only be header levers.
In addition to the digital reporting requirements, ViDA includes two other reform pillars:
- Single VAT Registration – the extension of the OSS returns to more cross-border transactions from 2025; and
- Platform economy VAT obligations – ride sharing and accommodation platforms have an obligation to charge and collect VAT from 2025.