UK: 
USA:
An online consultation has opened in the Netherlands with a view to the country implementing some measures contained within the VAT in the Digital Age (ViDAViDA or 'VAT in the Digital Age', is an EU initiative proposed by the European Commission that seeks to modernise and harmonise VAT processes for member states, by embracing new technologies. It is aimed at updating processes for the management of VAT, and reduce the VAT gap and fraud. The proposal also aims to address challenges in the area of VAT raised by the development of the platform economy.) mandate.
The Ministry of Finance launched the digital forum earlier this month following the publication of a draft bill for the early implementation of the Platform Economy pillar of ViDA.
ViDA’s Platform Economy regulations will see the VAT liability transfer from individual sellers to the platforms themselves. It means platforms that facilitate services such as short-term accommodation rentals and passenger transport will become liable for VAT within the EU.
While the Platform Economy pillar of ViDA is currently due to be mandated on 1st January 2030, the Netherlands is exploring the potential to introduce it from 1st July 2028; meaning marketplaces trading in the country face a shorter window to ensure compliance prior to go-live.
Such a move would position the Netherlands as a leader and pioneer in European VAT modernisation ahead of ViDA – which itself is the most significant shake-up of indirect tax in the continent in decades.
The Dutch proposal includes four measures that would have an impact on platforms and the way they manage VAT:
- A new Platform Economy definition
- A KOR exception to the rules that can be utilised by small businesses
- New place of service rules regarding facility services
- A new definition of short-term rental services
What does it mean for your business?
For online marketplaces, this news could reduce time to compliance by 18 months, making it quite the bombshell!
But even if your business is not a platform, it should serve as a valuable reminder of the need to prepare for ViDA and ensure compliance with its multitude of new digital requirements in timely fashion.
Away from the Platform Economy, the wave of global e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. mandates continues apace – and ViDA requires EU businesses to fully comply with all such regulations, including digital reporting.
Read more about how we can help businesses to comply with e-invoicing mandates.
