European VAT : Parliament Approves the Reform
The European Parliament approved this week the Council Directive 15159/2024 of November 5, 2024, amending Directive 2006/112/EC on value-added tax (VAT).
Known as “VAT in the Digital Age,” this reform, initially proposed by the Commission in 2022 and voted on by Parliament in 2023, was the subject of lengthy debates due to a lack of consensus among EU member states. After numerous amendments and a hard-fought agreement on the obligations of digital platforms, the final version of the directive required a new approval from Parliament, which was obtained on Wednesday, February 12.
As a reminder, the VAT in the Digital Age reform is based on three key pillars:
- Electronic invoicing and reporting for cross-border transactions
- Single VAT registration within the EU
- Liability of digital platforms for VAT collection
You can find more information on these measures and their implementation timeline in our article from November 5, 2024: https://btobnice.com/vida-package-approval-on-november-5-2024/
Our upcoming publications will provide an in-depth analysis of the impact of each measure on international businesses.
BTOBNICE accompanies businesses in European VAT Compliance. Discover our VAT services here.
