Latest meeting from the Group on The Future of VAT

The 42 meeting of the Group on the Future of VAT (GFV), took place on 8 September 2023. The group discussed several key subjects:

Travel and Tourism Package: The European Commission informed that the launch of the public consultation and the call for evidence had been postponed.

VAT E-commerce Package: The European Commission presented statistics revealing that the VAT amounts declared in 2022 under the three schemes introduced on 1 July 2021 amounted to nearly EUR 20 billion (EUR 17 billion via the One-Stop Shop (OSS) for online sales within the European Union, EUR 2.5 billion on imports of e-commerce goods; and 0,5 billion being the new VAT revenues from the removal of the VAT exemption on importations of low-value goods not exceeding EUR 22).

New SME Scheme: The European Commission introduced the implementation of the new SME scheme, scheduled for 1 January 2025. Member States were tasked with establishing technical and functional specifications for systems, and explanatory notes on this subject were promised.

VAT Treatment of Vouchers: The European Commission updated the GFV on the progress of processing input from Member States concerning the implementation of Directive 2006/1065 (Voucher Directive) for the forthcoming assessment report.

key takeaway

The VAT landscape for small businesses and actors of the digital economy is constantly changing. Changes should be carefully monitored and anticipated by businesses that want to remain compliant and have sufficient time to prepare for the changes.