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Madeleine Merkx, Anne Janssen, Maxime Leenders
EC Tax Review
Volume 31, Issue 4 (2022) pp. 202 – 218
https://doi.org/10.54648/ecta2022020
Abstract
From 1 July 2021, platforms must deal with VAT (Value Added Tax) reporting and record-keeping obligations under the VAT Directive. As of 1 January 2023, these platforms will also have to deal with a set of information obligations under the new DAC7 Directive. This article seeks to address the impact of this combined legislation for platforms by analysing the differences and similarities of the legislation and proposing possible improvements for the application of this combined legislation to avoid overlap and create more efficiency and effectiveness of those rules.
Keywords
DAC7, VAT, platform, record-keeping, reporting, obligations, exchange of information, sharing economy, e-commerce, alignment
Extract
The e-commerce VAT package that was adopted in December 2017 is a key element of the European Commission VAT Action Plan and the Digital Single Market strategy. While it should be transposed into the national legislations of the Member States by 2019 and 2021, in this article the author identifies key implementation issues and unfixed enforcement challenges. She highlights, in particular, that relying on electronic platforms to collect the VAT does not come without difficulties and risks of abuse and that the lack of enforcement jurisdiction of EU tax administrations on non-EU businesses remains an unsolved and most worrying issue. Her conclusion is that the adoption of the e-commerce VAT package is certainly not the last step of the EU VAT modernization journey.
EC Tax Review