The European Commission proposed on Thursday that operators active on platforms, such as Uber and Airbnb, will levy VAT and then pay the amount of tax to the tax authorities.
The Commission proposes that operators active in the platform economy in the passenger transport and short-stay sectors “become responsible for collecting and refunding VAT to the Tax and Customs Administration when service providers fail to do so, for example because they are small companies or individual providers”. “.
So platforms are responsible for charging VAT if drivers or accommodation owners fail to do so.
Brussels also proposes the transition to digital communication of information in real time based on electronic invoicing for companies with cross-border activities in the EU and the creation of a single VAT register across the EU.
According to a statement, member states have lost €93 billion in VAT revenue by 2020, and the community executive estimates that the proposals presented today will help the 27 collect up to €18 billion in additional VAT revenue annually.
The measures – which must be approved by the Council of the EU and the European Parliament – aim to modernize the VAT system and make it more efficient for businesses and more fraud-resistant.
Source: DN
