This briefing examines how EU legislation shapes Member States’ ability to set VAT rates, highlighting the legal uncertainty and administrative complexity arising from multiple preferential rates. It calls for regular reviews to assess the necessity and effectiveness of these rates amid high budget deficits and competing spending priorities.
Global e-Invoicing Requirements Tracker
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TPA Global · about 2 hours ago
The European Commission’s ViDA initiative introduces a common EU digital reporting standard, mandatory e‑invoicing for intra‑EU B2B transactions, and expands the OSS/IOSS to cover more B2C supplies. It also imposes platform‑operator deemed‑supplier rules for accommodation and transport services. The phased rollout runs from 2025 to 2035, requiring businesses to modernise their tax technology and processes.
LinkedIn Article by Vincent Lebrun · about 4 hours ago
The ViDA package represents a sweeping overhaul of the EU VAT system, aiming to curb fraud, simplify SME compliance, and create a fairer digital marketplace. It introduces mandatory e‑invoicing and near real‑time digital reporting for intra‑EU transactions, expands the Single VAT Registration and Import One‑Stop Shop, and projects up to €18 billion in annual revenue gains and €5.1 billion in compliance cost reductions by 2030.
Meridian Global Services · about 11 hours ago
The article explains the conditions under which a B2B intra‑community supply of goods can be zero‑rated in the EU. It outlines the required documentation, reporting obligations, and the consequences of non‑compliance.
LinkedIn · 1 day ago
Advocate General Kokott’s Opinion C‑603/24 clarifies how intra‑group transfer price adjustments interact with VAT. The opinion states that such adjustments are not automatically a separate VAT supply, but may alter the taxable amount under Articles 73 and 90 of the VAT Directive if they reflect a variable purchase price agreed upfront. Only when an actual service for consideration exists is a separate supply considered.
BDO · 2 days ago
The European Parliament’s ViDA package introduces mandatory e‑invoicing and near real‑time digital reporting for cross‑border EU transactions from 1 July 2030, requiring the EU electronic invoicing format. Businesses must report transaction data within 10 days of the taxable event, and member states may extend domestic e‑invoicing to before, on, or after that date with transitional periods up to 2035. The initiative aims to harmonise VAT rules, reduce fraud, and lower compliance costs across the EU.
VatCalc · 3 days ago
The EU has agreed an interim €3 customs levy for parcels that will take effect on 1 July 2026. Romania and Italy have already implemented national levies of 25 RON (~€5) and €2 respectively for low‑value parcels, while the Netherlands and France remain in proposal stages. The move aims to curb VAT and customs fraud on low‑value e‑commerce shipments.