European Union: Reached Council general approach on Regulation amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age

On 5 November 2024, the European Council reached an agreement on the proposed Regulation amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age. The amendments to this Regulation are focused on administrative cooperation across Member States. They establish a real-time Central VAT Information Exchange System (VIES), allowing daily data updates from member states with cross-border transaction monitoring. Member States are required to upload VAT data to this central VIES. Platforms are also required to retain VAT-related records and make them available to national tax authorities. Furthermore, the regulations supported an expanded “one-stop-shop” system for VAT registration by integrating it into the central VIES, simplifying reporting for cross-border transactions. Data will be retained for 10 years to support long-term audits. The Regulation will be introduced in a phased rollout, with the central VIES expected to be functional by 2028 and with gradual adoption of automated platform records up to 2032. The Regulation is subject to the special legislative procedure, which requires the European Parliament’s consultation on the amendments made to the European Commission’s submitted proposal.