This newsletter covers the new rules under the “VAT in the Digital Age” reform, which are intended to benefit the e-commerce industry. The new rules in this area are designed to reduce the number of registrations required in other EU countries for many businesses, including online retailers. A key requirement for this is the significant expansion of the One-Stop-Shop schemes. The new regulations will be introduced in two stages – on 1 January 2027, and 1 July 2028. It remains to be seen whether all parties will be able to benefit from them.

The ECOFIN Council approved the amendment to the EU VAT Directive as part of the ‘VAT in the Digital Age’ initiative. This means that the amendments provided for in the compromise proposal of 30 October 2024 will now enter into force. The amendments to the EU VAT Directive are going to extend the existing deemed reseller model for online marketplaces. Moreover, deemed reseller models are going to apply to digital platforms which facilitate short-term accommodation rental or passenger transport. In this newsletter, we would like to inform you about relevant details.

The EU is paving the way for VAT into the digital future. The proposal for a directive to comprehensively amend the EU VAT Directive ‘with regard to VAT rules for the digital age’ was unanimously adopted today, 5 November 2024. It contains regulations for the platform economy, regarding reporting obligations and electronic invoicing as well as for a single EU VAT registration. In this newsletter, we would first like to give you a brief overview. Over the next few days, we will inform you in detail about the various changes in further newsletters.