Implementation Dialogue on Taxation with Commissioner Wopke Hoekstra

Objectives

The Implementation Dialogue on Taxation serves as a discussion forum between Commissioner Wopke Hoekstra and representatives from  businesses and organisations directly affected by ViDA. Following the adoption of the ViDA package, the objective of the dialogue is to gather feedback and experiences to ensure the effective implementation of the  legislation. The insights are valuable to ensure that the implementation process is adaptable and responsive to the realities and concerns of those stakeholders most affected. The input from the dialogue is therefore crucial and will be incorporated into the ongoing work on ViDA and its three elements including the Digital Reporting Requirements (DRR), the rules on the Platform Economy, and the Single VAT registration (SVR).

Agenda

9:30-10:00 

Welcome coffee 

10:05-10:10 

Introduction by Commissioner Wopke Hoekstra

10:10- 11:00 

Session 1: Challenges in implementing ViDA 

This session will delve into the practical challenges faced by businesses with the implementation of the ViDA package, exploring ways to ensure cohesive dialogue and reducing fragmentation in its application. Participants are expected to briefly share the specific bottlenecks they foresee from a business standpoint and suggest strategies for maintaining effective communication and overcoming obstacles.

11:00 – 11:50 

Session 2: Realising the benefits of ViDA

This session will focus on identifying opportunities that arise with the implementation of ViDA, such as enhanced automation and compliance mechanisms. Participants are encouraged to provide insights on potential future enhancements to ViDA, considering further expansion of its elements to simplify the VAT system or other measures to facilitate better compliance and further simplify the VAT system into the future.

11:50-12:00 

Concluding remarks

Participants

A variety of international large, small and medium-sized businesses and business associations have been invited to ensure a broad and balanced perspective, reflecting the scope of the measures, including:

• E-Commerce
• Travel and Tourism
• Financial Technology
• Technical manufacturing
• Telecommunications
• Software development
• Short-term accommodation and passenger transport platforms
• Delivery sector
• Trade Associations (Including for SMEs)
• VAT advisors

The following participants have accepted the invitation to join the meeting and to represent views:

• AirBnB
• Airbus Group
• Alibaba
• Allegro
• Amazon
• Avalara
• Awaze
• Back Market
• Booking.com
• Business at OECD (BIAC)
• BusinessEurope
• Catawiki
• Clevylinks
• Danish EU Presidency
• Deloitte
• DIHK
• DHL
• ebay
• E-commerce Europe
• EEA
• ENEL
• Ernst & Young
• Etsy
• EuroCommerce
• GENA
• HOTREC
• KPMG
• Orange
• PEPPOL
• PPC SA
• PWC
• REPSOL
• Sage
• SMEUnited
• Sovos
• Stripe
• Thomson Reuters
• Uber
• Zalando

Background

VAT in the Digital Age aims to modernise the EU VAT system to better align with the digital economy. This initiative addresses four critical factors:

Firstly, ViDA tackles the VAT gap and fraud by integrating digital tools to enhance VAT collection. It should help Member States recover up to EUR 18 billion annually, with EUR 11 billion from anti-fraud measures.

Secondly, VAT procedures should be simplified, especially for small and medium-sized enterprises (SMEs). By reducing the need for multiple VAT registrations, it supports entrepreneurship, innovation and cross-border trade, cutting administrative burdens by around EUR 5.1 billion per year.

Additionally, by addressing loopholes and uneven tax treatment, ViDA ensures fair taxation in the digital economy and promotes a level playing field for digital and traditional businesses.

Lastly, ViDA supports the EU’s Digital Single Market by harmonising VAT rules and facilitating seamless digital trade across Member States, aligning with the goals of a fully integrated digital market.

Please note that this event is by invitation only and not open for registration. The summary conclusions from the Implementation Dialogue will be published on this page shortly after the event as well as on the central website dedicated to implementation dialogues.

Summary Conclusions

The Implementation Dialogue was a key opportunity for the Commissioner to discuss the implementation of ViDA with 38 representatives from businesses, businesses associations and advisers. As holders of the rotating Council Presidency, representatives from Denmark were also in attendance. The meeting focused on the challenges in the implementation of ViDA, as well as on the opportunities presented by ViDA and beyond. 

The key takeaways were as follows:

1) On the challenges:

• Risks of fragmentation and the need to ensure a harmonised application of the rules. The Commission should continue to play a crucial role in providing guidance.
• Attention should be given to SMEs: there is still a large proportion of SMEs who have not embraced digitalisation, and they will need additional support.
• The Commission, businesses and Member States should adopt a cooperative approach, discussing the implementation together, for example via events or roadshows.
• Lead time: there needs to be enough time for businesses to prepare. Member States should have national guidance and legislation ready at least 18 months in advance.
• Accessibility: all information should be published and regularly updated.
• It is important to implement a system which works for all businesses, from the smaller to the largest.

2) On the specific elements:

• DRR: having a single method of transmission of electronic invoices and avoiding additional layers of national specific requirements.
• Platforms: the complexity of the deemed supplier regime and the need to ensure consistent application of the rules across the Member States.
• SVR: the importance of the alignment of the VAT and customs rules in the context of the secure Import One Stop Shop (IOSS), and the need for seamless deregistration processes.

3) On the opportunities:

• Delegates stressed the opportunities if the One Stop Shop (OSS) could be used for B2B supplies, along with the ability to deduct input VAT.
• They also suggested the setting up of tax data hub, in order to reduce the duplication of information requirements.
• There was a need to enhance VAT Information Exchange System (VIES), notably to speed up verification of VAT identification numbers.
• The benefits of automation should be stressed for business internal purposes.

Next steps: the Commissioner stressed that the discussions should continue, with regular meetings between the Commission, the business community, and Member States, via technical meetings and other fora.

Related links

VAT in the Digital Age (ViDA) 

Implementation Dialogues