European Union: Reached Council agreement on Implementing Regulation (EU) 282/2011 as regards information requirements for certain VAT schemes

On 5 November 2024, the Council reached an agreement on Regulation amending Implementing Regulation (EU) 282/2011 as regards information requirements for certain VAT schemes in the digital economy. Amendments to the Regulation cover operational details for the VAT Directive. They include a requirement for digital platforms hosting e-commerce services, such as short-term rentals or passenger transport, to collect VAT when the service providers do not pay the VAT themselves. The platform is expected to collect the VAT directly from the customer and remit it to the tax authorities. Additionally, the Council has expanded the definition of what constitutes a "short-term rental" for tax purposes and provides member states the opportunity to exempt small and medium enterprises (SMEs) from these rules.