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Public Czech Republic Author: Ema Stamenković
The European Commission has approved modifications to modernize the VAT system, including mandatory electronic invoicing and digital reporting for cross-border transactions, VAT application in the platform economy, and VAT registration extension
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Content accuracy validation date: 08.10.2025
Content accuracy validation time: 08:38h

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
  1. Application of VAT in the platform economy: VAT on certain services (transport and lodging) should be paid by the presumed provider running the platform.
  2. 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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