Last Updated on Thursday, 1 June, 2023 at 1:08 pm by Andre Camilleri
The European Commission has introduced a package of proposals to address the challenges faced by companies in the digital economy in relation to Value Added Tax (VAT). The package’s key actions aim to support the growth of businesses, particularly SMEs and cross-border operators, as well as to help Member States recover billions of euros annually in VAT revenues.
By implementing real-time digital reporting by companies through e-invoicing, the new system will equip Member States with crucial information to combat VAT fraud. Additionally, it will streamline administrative processes and lower compliance costs, fostering harmonization across EU countries and enabling the establishment of national digital reporting systems.
The EU Vat in the Digital Package also proposes the implementation of a single VAT registration system throughout the EU, expanding upon the existing ‘VAT One Stop Shop’ model for online shopping companies. This allows businesses selling to consumers in other Member States to register only once for VAT purposes for the entire EU, streamlining their obligations through a single online portal in a common language.
Moreover, the package introduces updated VAT rules for passenger transport and short-term accommodation platforms in the sharing economy. Under these rules, operators in these sectors will bear the responsibility of collecting and remitting VAT to tax authorities on behalf of their users. This uniform approach across all Member States will not only level the playing field between online and traditional short-term accommodation and transport services providers but also simplifies the VAT compliance process for operators across the EU.
Local businesses are invited to participate in the Malta Business Bureau’s upcoming online webinar taking place on Tuesday 6 June, between 9.30 and 10.30am, that will provide more detailed information on these reforms. Anyone interested in joining this event can register by visiting the Malta Business Bureau website www.mbb.org.mt or reach out to the MBB policy team on firstname.lastname@example.org.