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On 5 November 2024, EU finance ministers approved the amended ViDA proposal, clearing the way for formal adoption on 11 March 2025. This article outlines the second pillar of ViDA – new VAT obligations for platforms and their underlying suppliers.
ViDA comprises three key areas:
Following our earlier articles, including a general overview of ViDA, this article explores the proposed changes to VAT rules for the platform economy and e-commerce, and considers their potential impact on businesses. For more details on other ViDA pillars, see the related links above.
From 1 January 2030 (or voluntarily from 1 July 2028), platforms facilitating passenger transport and short-term accommodation will be deemed suppliers. They will be liable for charging and remitting VAT when their underlying suppliers do not do so. This typically applies when suppliers are private individuals or small businesses operating below the VAT threshold.
Platforms must collect and remit VAT in cases where suppliers:
Platforms must also collect and retain information on services—such as short-term accommodation and passenger transport—for which they are not liable to account for VAT.
A key change in the latest ViDA amendments is the revised definition of short-term accommodation, now capped at 30 nights. In addition, Member States may exempt supplies by SMEs covered under the EU special scheme for small enterprises from the deemed supplier rule.
From 1 July 2028, facilitation services provided by platforms will be treated as intermediary services. For B2C transactions, the place of supply will follow that of the underlying transaction. This represents a shift for Member States that currently treat such services as electronic services for VAT purposes.
The proposed rules will reshape VAT responsibilities for digital platforms, particularly those involved in short-term accommodation and transport. With staggered adoption timelines and significant compliance implications, platforms should begin assessing their obligations and data collection processes now.
To stay ahead of these changes and understand how they fit within the broader ViDA reform, visit our ViDA hub for timelines, guidance and insights across all three pillars.
