European Union: Council adopted Directive amending Implementing Regulation (EU) 282/2011 as regards information requirements for certain VAT schemes

On 11 March 2025, the Council of the European Union adopted a Directive amending Implementing Regulation (EU) 282/2011 as regards information requirements for certain VAT schemes. The amendments specify operational details for the VAT Directive, including new obligations for digital platforms facilitating e-commerce services, such as short-term rentals and passenger transport. Under the amendments, platforms must collect VAT when service providers do not pay VAT themselves. In such cases, the platform will collect VAT directly from the customer and remit it to tax authorities. Additionally, the definition of "short-term rental" for tax purposes has been expanded, and Member States may exempt small and medium enterprises (SMEs) from these requirements.