Brussels, 11 March 2025
The Council has today given its final green light on a set of laws to make the EU’s value added tax (VAT) rules fit for the digital age.
The EU’s VAT rules need to keep track of the digital transformation of our economies. This package will give the EU a competitiveness boost, help combat VAT fraud and cut the administrative burden for business.
Andrzej Domanski, Polish minister for finance
The package adopted today covers a directive, a regulation and an implementing regulation and brings changes to three different aspects of the VAT system. The new rules will:
- make VAT reporting obligations for companies who sell goods and services to businesses in another EU member state fully digital by 2030
- require online platforms to pay VAT on short-term accommodation rentals and passenger transport services in most cases where individual service providers do not charge VAT
- improve and expand online VAT one-stop-shops so that businesses do not have to go through costly registrations for VAT in every member state in which they do business
Next steps
The directive, regulation and implementing regulation all enter into force on the twentieth day following their publication in the Official Journal of the EU. While the regulations are directly applicable, the directive will have to be transposed into national law.
Background
On 8 December 2022, the Commission presented the ‘VAT in the digital age’ package which consists of three proposals:
- a proposal for a Council directive amending directive 2006/112/EC as regards VAT rules for the digital age
- a proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age
- a proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes
–
- Value added tax in the EU (background information)
- Taxation: Council agrees on VAT in the digital age package (press release, 5 November 2024)
Source EU Council: Visit the meeting page