The European Commission proposed a plan of measures this Thursday. modernize the rules that affect VAT and this could allow Twenty-seven to raise up to 18,000 million euros per year. The proposal proposes updating VAT regulations. digital platforms passenger transport and short-term accommodation, What uber Y Airbnb. It has been argued that these platforms are responsible for collecting VAT and forwarding it to tax authorities where service providers do not, for example, be it a small company or an individual provider.
According to the Commissioner for the Economy, Paolo Gentiloni, VAT is not payable on many transactions made through these platforms, which means “injustice” and unfair competition compared to traditional taxis and hotels, working directly with the end customer. “This proposal seeks to eliminate this unequal treatment by making platforms responsible for collecting VAT even though the provider is not collecting it,” Gentiloni said at a press conference. said. According to the commission’s proposal, if the Uber driver or the owner of the short-term rental does not charge VAT, the digital platform will instead have to do so by automatically adding the amount to the price displayed in the app or page.
From the perspective of the European Commission, this proposal will simplify tax compliance for SMEs and individual providers of accommodation or vehicles. that they are often unaware of their obligation to collect and pay VAT for the service rendered to the Treasury. According to calculations of Community officials, this change will allow Member States to receive up to 6,600 million euros per year for ten years.
cross-border operations
In addition to the inclusion of transport and accommodation platforms in VAT collection, the European Commission’s proposal this Thursday to improve tax collection by up to 18,000m euros per year includes two other important axes.
Thus, the proposal offers: real-time digital notification in electronic invoicing for independently operating companies cross border This will allow governments to learn more and fight the so-called ‘carousel scam’ of VAT when transactions affect more than one Member State. According to Brussels estimates, this will reduce VAT corruption by: 11,000 million euros and reduce management and compliance costs for EU operators by more than €4.1 billion per year over the next decade.
Finally, Brussels is determined. a unique VAT record Across the EU as it exists with a one-stop shop for online shopping companies. This way, companies selling to consumers in other Member States will be able to register for VAT once for the entire EU and fulfill their VAT obligations in a single language through a single online portal. According to estimates, with this mechanism, companies could save about 8,700 million euros in administrative and registration costs over ten years.