Mark Your Calendar: EU´s November 5 ECOFIN Meeting to Feature Key Developments on ViDA

| Image Credits: "Economic and Financial Affairs Council (ECOFIN) on 14 May 2024 " by Belgian Presidency of the Council of the EU 2024 from Belgium

The upcoming Economic and Financial Affairs Council (ECOFIN) meeting on November 5 will feature significant deliberations on the VAT in the Digital Age (ViDA) proposals. 

Here are the key expectations for the meeting:

LEGISLATIVE DELIBERATIONS

(Public deliberation in accordance with Article 16(8) of the Treaty on European Union)

• VAT in the Digital Age (ViDA) package:
• Directive on VAT rules for the digital age – General approach.
• Regulation on VAT administrative cooperation – Political agreement (Legal basis: Article 113 TEU).
• ViDA package on Implementing Regulation:
• Information requirements for certain VAT schemes (Legal basis: Directive 2006/112/EC) – Political agreement.

KEY DECISIONS ON POSTPONED INITIATIVES

• Deemed supplier rule for ride-hailing and accommodation platforms:
• The proposed launch has been postponed to July 2028 to resolve Estonia’s veto on pillar 2 of ViDA concerning the Platform Economy.
• Other pillars remain unchanged:
• July 2027: Single VAT Registration.
• July 2030: Digital Reporting and e-invoicing.

CURRENT NEGOTIATIONS AND COMPROMISES

• The European Commission (EC), tax experts from member states, and Hungary (as president of the Council of the EU) are reviewing new draft texts with compromises on ViDA.
• Focus: Unlocking Estonia’s veto on pillar 2 of the Platform Economy.
• The Working Party on Tax Questions meets again on October 24 to finalize these compromises.

NEXT STEPS IN THE VIDA TIMELINE

• General direction of the ViDA discussion: A full agreement is expected at the November 5 ECOFIN meeting.
• EU Parliament reapproval: The ViDA proposals may return to the EU Parliament to formalize the compromises, likely a formality given the extended timetable.
• Council acceptance: After Parliament approval, the proposals move to the Council for final acceptance.

SOURCE/RECOMMENDED READ:

• NOTICE OF MEETING AND PROVISIONAL AGENDA COUNCIL OF THE EUROPEAN UNION (pdf)