VATWatch - December 2024
VAT in the Digital Age
The EU is working on new measures to reform the EU’s VAT system to ensure that it is fit for the digital age. Every year member states raise around 1000 billion Euros in VAT revenue and yet still significant amounts of VAT remain uncollected due to fraud and maladministration among other reasons. On 5th November 2024, the European Council reached an agreement on the ‘VAT in the digital age’ package, which aims to help tackle VAT fraud, support businesses and promote digitalisation.Â
The new rules will:
- improve the one-stop shop for the online VAT registration system
- require online platforms to pay VAT on passenger transport and short-term accommodation rental, where individual service providers are exempt
- make digital reporting obligations based on e-invoicing for businesses operating across borders in the EU fully digital by 2030
It is estimated that over the next ten years the changes could bring in an additional 6.6 billion Euros per year in VAT revenue whilst saving businesses, particularly SMEs, approximately 8.8 billion Euros in registration and administration expenses.
Season’s Greetings!
This is the final VATWatch round-up of 2024 and we’d like to take the opportunity to wish you all a very merry Christmas and a happy new year.
2024 saw the launch of our VAT Ready Club and it’s been another interesting year in all things VAT, as we covered a wide range of topics from the treatment of ride hailing apps to VAT of private school fees. If there is anything you missed, they are available here on our website for you to refer to at your leisure.
I hope you will continue to join us each month throughout 2025 for regular bulletins where, I will as usual, aim to keep you abreast of any VAT news.
The office will close at 5pm on Friday 20th December and re-open at 9am on Thursday 2nd January, whilst we too are enjoying the festive period.
Thank you for taking the time to read this VATwatch round-up.
