General information
Aiming to lower administration and capture the risk of VAT fraud in the digital economy, changes have been approved at the EU level.
A number of modifications to modernize the VAT system have been approved by the European Commission. The following areas are intended to be addressed.
Introducing electronic invoice-based digital reporting for companies conducting cross-border operations in the EU
The following transactions between taxable persons will be subject to mandatory electronic invoicing and digital reporting as of July 1, 2030:
- Supplies of goods between EU Member States
- Movement of personal belongings within the EU, unless a unique one-stop shop program is employed
- Sales of goods and services under the reverse charge regime
- Application of VAT in the platform economy: VAT on certain services (transport and lodging) should be paid by the presumed provider running the platform.
- Extension of the so-called one-stop shop OSS regime to other transactions: VAT registration
The early stages of putting the innovations into practice are anticipated to occur between 2027 and 2030
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