The most significant changes to the EU VAT system in decades raise billions in taxes while providing businesses and e – commerce sellers with significant savings.
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On December 8, 2022, the European Commission adopted the proposed Council Directive amending VAT Directive 2006/112/EC in relation to VAT rules for the digital age.
This includes three reform pillars:
1️⃣ Real-time and structured e-invoicing for all companies with intra-community supplies;
2️⃣ VAT collections role for accommodation & transport digital platforms;
3️⃣ Extended EU e-commerce VAT reporting plus own stock movements via OSS.
Among the other substantial improvements are the removal of call-off stock, modifications to IOSS (required for marketplaces but no threshold adjustment), and refinements to reverse charge options.
Once approved by the EU Council, these amendments will be gradually implemented between 2025 and 2028.