On 8 December the European Commission (“EC”) launched its long-awaited proposals to modernize the VAT rules within the EU collectively known as “VAT in the Digital Age package” (“ViDA”).
The ViDA consists of three key parts, commonly referred to as the following:
- Digital reporting and E-invoicing;
- The Platform economy; and,
- The Single VAT registration.
Please see below a summary of the proposed changes together with some initial comments. To note, the ViDA proposals will now be discussed by the EU Member States and ultimately the ViDA proposals will require unanimous approval by all Member States to come into law. It is therefore expected that there will be a number of developments regarding ViDA during 2023 of which we will keep you updated.