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

On 14 April 2025, Council Implementing Regulation (EU) 2025/518 amending Implementing Regulation (EU) No. 282/2011 as regards information requirements for certain VAT schemes entered into force with grace period. The Regulation introduces new obligations for digital platforms facilitating e-commerce services, including short-term accommodation rentals and passenger transport by road. 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. The Act is scheduled to apply from 1 July 2028.