European Union: Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including platform economy VAT changes and extension of deemed supplier rules enter into force
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Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including platform economy VAT changes and extension of deemed supplier rules enter into force
On 1 January 2027, Article 2 of Council Directive (EU) 2025/516 will enter into force. The said Article extends the existing deemed supplier model to cover platforms that facilitate the supply of goods within the EU by non-EU sellers, and for imports of low-value consignments. The provision introduces a sunset clause for call-off stock arrangements, prohibiting the initiation of new arrangements after 30 June 2028 and requiring existing ones to conclude by 30 June 2029. Furthermore, Article 2 introduces amendments to various administrative aspects of the VAT Directive, including the treatment of thresholds for certain cross-border transactions, the timing of invoice issuance, and eligibility for the optional cash accounting scheme. It also adjusts the One Stop Shop (OSS) procedures, particularly regarding supplier registration and VAT deduction rights. The amendments also introduce harmonisation of VAT refund procedures and recordkeeping obligations for taxable persons engaged in cross-border supplies within the EU.
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