European Union: VAT Expert Group Deliberates on Key VAT Policy and Implementation Measures

Here’s a detailed look at the key points addressed during the meeting:

NATURE OF THE MEETING

The meeting was held in person in Brussels and was not open to the public, ensuring focused deliberations among the participating members.

IMPLEMENTATION OF THE NEW SPECIAL SCHEME FOR SMALL ENTERPRICES (SMES):

• VEG N° 114: Updated SME Explanatory Notes (CONFIDENTIAL): Commission services presented the second iteration of the Explanatory Notes for the SME scheme. The draft, enriched with practical examples and figures compared to the first version, aims to provide clear guidance for small enterprises not well-versed in VAT matters. VEG members provided detailed comments for further precision and clarification, focusing on key concepts and definitions.
• VEG N° 115: SME Guide (CONFIDENTIAL): The first draft of the SME Guide, a mirror version of the OSS Guide, was presented. Suggestions from VEG members included adding graphical explanations, decision trees, and simplifying technical language. The deadline for providing comments on the draft is 22 April 2024.
• Next Steps in SME Scheme Implementation: Commission services highlighted ongoing efforts, including the development of an SME web portal and a planned press campaign to promote awareness of the new regulations effective from 1 January 2025
• VAT After ViDA – Exchange of Views: The group engaged in a preliminary discussion on post-ViDA scenarios, exploring areas for further improvement in the VAT system. A detailed report is expected by the end of 2024, with discussions to continue in the next meeting in June 2024.

INFORMATION POINTS:

ViDA Package Negotiations:

Updates on negotiations under the ViDA legislative package were provided, with a focus on Digital Reporting Requirements (DRR) and Single VAT Registration (SVR) parts. Technical aspects and challenges were discussed, with progress noted despite ongoing discussions.

Customs Reform and VAT Proposal:

Details regarding customs reform, including the removal of the EUR 150 threshold and mandatory IOSS implementation, were discussed.

Adoption of Commission Decision (EU) 2024/775: 

The decision on relief from import duties and VAT exemption for specific goods was addressed, highlighting its applicability from 1 January 2024 until 31 December 2024.

ANY OTHER BUSINESS (AOB):

A member provided updates on various efforts, including harmonization of postal/express electronic data, e-invoicing standards revision, and digital product passport initiatives.

NEXT MEETING

Scheduled for 4 June 2024, pending confirmation.

SOURCE:

• VEG 116 - Minutes 35th VEG meeting 18-03-2024.pdf