ViDA proposals not yet adopted but new text availabe
ViDA proposals not yet adopted but new text availabe
Unlike we expected the EU Member States did not reach an agreement on the ViDA (VAT in the digital age) proposals on 14 May during the Ecofin. Estonia had objections to the platform economy part of the proposal. Just before the Ecofin, a new text of the ViDA proposals was made public. This shows several changes compared to the original proposal. We will discuss the components of the new proposal through a number of articles covering the pillars of ViDA.
With direct effect as of the date of entry into force of the
Directive:
Content of ViDA
The objective of ViDA is to adapt the VAT system to the digital age. It consists of three pillars:Next to this some changes are proposed to adapt the e-commerce legislation that came into application on 1 July 2021 and some changes related to the new place of supply rules for entertainment services etc. entering into application on 1 January 2025.
In four separate articles we will cover the three pillars of ViDA as well as the changes to the e-commerce rules. Below you will find a time line of the proposed changes.
Timeline
Not all proposed changes will enter into application at the same time. Below we have included a time line making clear which changes apply as of which date. Depending on how soon the EU Member States will reach an agreement this time line might change.With direct effect as of the date of entry into force of the
Directive:
- Linking the consignment number with the I-OSS number.
- Member States may implement e-invoicing for domestic transactions.
1 January 2025
- EU Member states will share data on the total value of goods imported under the I-OSS per I-OSS identification number per Member State of consumption.
- E-commerce changes:
- Clarification of the simplification applying to small businesses
- Extension of the OSS to cover all B2C-services
- Harmonized tax point in case of transactions reported under OSS.
1 July 2027
- Rules on platform economy
- Extension of the OSS to cover domestic B2C-supplies of goods, supplies with installation or assembly, supplies on board of an EU passenger transport and supply of electricity, gas, heating and cooling.
- Extension of the mandatory reverse charge rule.
- Introduction of a special scheme for transfer of own goods
- End of call-of-stock regime with possibility to transfer ownership of the goods to the receipient of the goods untill and including 30 June 2028.
- E-commerce changes:
- Corrections under the OSS
- Granting customs authorities access to information about I-OSS registered traders.
- New rules on record keeping for platforms.
- Mandatory e-invoicing and digital reporting for cross-border transactions
- Introduction of central VIES
- Final date for adaption of existing domestic digital reporting regimes to the EU standard