Under the EU’s ViDA initiative, new VAT rules from March 2025 make platforms in the accommodation and transport sectors liable for VAT on short-term stays (≤30 nights) and road transport, unless the supplier provides a valid VAT/OSS ID or qualifies under an SME scheme. B2C services are taxed where used, B2B where the recipient is based. Platforms must keep transaction records for 10 years. The rules aim to modernize VAT compliance but may vary across Member States, requiring platform system updates.
Netherlands and EU's ViDA: New VAT Rules for Platforms in Accommodation & Transport
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Author: Ljubica Blagojević
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Content accuracy validation date:
30.04.2025
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08:16h
Under the VAT in the Digital Age (ViDA) initiative, new VAT rules targeting the platform economy—particularly in accommodation and passenger transport—were adopted on 11 March 2025 and published on 25 March 2025 in the EU Official Journal. The reform consists of two main parts: a deeming provision and a new place of supply rule for facilitation services.
- Deeming Provision
- Platforms facilitating short-term accommodation (≤30 nights) and road passenger transport are deemed to be suppliers, making them responsible for VAT on the full transaction.
- This applies only when platforms actively facilitate the transaction (e.g., connecting customers and suppliers). Payment providers, listing services, or redirects are excluded.
- The original supplier’s transaction to the platform is VAT-exempt without deduction rights, while the platform’s onward supply to the customer is VAT-taxable, unless a specific exemption applies.
- The deeming rule does not apply if:
- The supplier provides a valid VAT or OSS ID and declares intent to handle VAT reporting themselves.
- The transaction qualifies under a Member State's SME scheme (optional exclusion).
- Place of Supply Rule for Facilitation Services
- If a platform charges for facilitation, the place of VAT depends on the transaction type:
- B2B: VAT is due where the recipient is established; reverse charge applies.
- B2C: VAT is due at the location of the underlying supply (e.g., where the service is used).
- Record-Keeping Obligations
- Platforms must retain digital records of all facilitated B2B and B2C transactions for 10 years and provide them upon request to EU tax authorities.
- While B2C record-keeping has been mandatory since 1 July 2021, this rule now extends to B2B transactions.
Overview:
- Objective: The rules aim to modernize VAT compliance for digital platforms and close VAT gaps.
- Complexity: Significant flexibility given to Member States (e.g., exclusions for SMEs) may result in inconsistent application across the EU.
- Compliance Risks: Platforms must update systems to manage VAT liabilities, exemptions, and reporting duties accurately.
- Strategic Impact: Platforms must assess their business models and user data flows to determine when and where they are the deemed supplier.
These rules represent a significant shift in platform liability and transparency, reinforcing the EU's move toward a digitally streamlined VAT environment.
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