Member states will recoup €11 billion in lost VAT revenues every year for the next 10 yearsas the European Parliament has approved an update to the VAT directive requiring online platforms to pay VAT on services offered through them by 2030.
While the Directive has granted the possibility of exempting SMEs from this rule, the short-term accommodation rental and the road passenger transport sectors are expected to be significantly affected the most.
The update also mandates the full digitalisation of VAT reporting for cross-border transactions by 2030.
Businesses will be required to issue e-invoices for cross-border business-to-business transactions and automatically report data to tax authorities, enhancing the fight against VAT fraud.
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