Brussels (dpa) – The European Union is set to implement new regulations aimed at combating VAT fraud, focusing on electronic invoicing and online transactions. During a recent meeting in Brussels, EU finance ministers approved a legislative package that seeks to enhance digitalization efforts.
Starting in 2030, businesses engaged in selling taxable goods and services across EU member states will be required to report every cross-border transaction in real-time. Previously, national tax authorities received consolidated reports of such sales every few months, which created opportunities for fraudulent activities.
New Regulations for Online Platforms
Moreover, online rental platforms like Airbnb and Booking, as well as transportation services, will be mandated to collect VAT directly from customers and remit it to tax authorities. The updated regulations also simplify the VAT registration process, allowing companies operating in multiple EU countries to register just once for VAT purposes across the entire EU.
These new regulations will be published in the Official Journal of the EU before coming into effect and may require incorporation into national legislation. The European Parliament has previously endorsed the new rules. (March 11)
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