| Image Credits: “Economic and Financial Affairs Council (ECOFIN) on 14 May 2024 ” by Belgian Presidency of the Council of the EU 2024 from Belgium
The upcoming Economic and Financial Affairs Council (ECOFIN) meeting on November 5 will feature significant deliberations on the VAT in the Digital Age (ViDA) proposals.
Here are the key expectations for the meeting:
LEGISLATIVE DELIBERATIONS
(Public deliberation in accordance with Article 16(8) of the Treaty on European Union)
- VAT in the Digital Age (ViDA) package:
- Directive on VAT rules for the digital age – General approach.
- Regulation on VAT administrative cooperation – Political agreement (Legal basis: Article 113 TEU).
- ViDA package on Implementing Regulation:
- Information requirements for certain VAT schemes (Legal basis: Directive 2006/112/EC) – Political agreement.
KEY DECISIONS ON POSTPONED INITIATIVES
- Deemed supplier rule for ride-hailing and accommodation platforms:
- The proposed launch has been postponed to July 2028 to resolve Estonia’s veto on pillar 2 of ViDA concerning the Platform Economy.
- Other pillars remain unchanged:
- July 2027: Single VAT Registration.
- July 2030: Digital Reporting and e-invoicing.
CURRENT NEGOTIATIONS AND COMPROMISES
- The European Commission (EC), tax experts from member states, and Hungary (as president of the Council of the EU) are reviewing new draft texts with compromises on ViDA.
- Focus: Unlocking Estonia’s veto on pillar 2 of the Platform Economy.
- The Working Party on Tax Questions meets again on October 24 to finalize these compromises.
NEXT STEPS IN THE VIDA TIMELINE
- General direction of the ViDA discussion: A full agreement is expected at the November 5 ECOFIN meeting.
- EU Parliament reapproval: The ViDA proposals may return to the EU Parliament to formalize the compromises, likely a formality given the extended timetable.
- Council acceptance: After Parliament approval, the proposals move to the Council for final acceptance.
