Breaking News: Council of the EU agrees on “VAT in the Digital Age Package”

“After almost two years of negotiations, the Council has reached an agreement on the VAT package. This is a cornerstone for the digital transition and a significant step in improving the competitiveness of the EU.” - Mihály Varga, Hungarian Minister for Finance

The Council will be presenting new rules for business carried out through digital platforms, electronic invoices, and real-time data reporting. All EU companies will issue e-invoices for business-to-business transactions, automatically report these to their tax administration, and National tax administrations will then share the data through a new IT system.

The digital age package should be in place in 2030 and each member state VAT system should become interoperable with the EU system by 2035.

At EuroVAT, we are excited about how the new digital VAT reporting may improve VAT one-stop-shops. We are hoping that U.S. businesses will experience an easier process for VAT registration and reporting VAT when they do business with several EU countries. In the meantime, we look forward to assisting you with VAT on sales to the EU; and implementing any new VAT benefits for our North American clients.

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