ViDA: Update from ECOFIN meeting

ViDA proposals were discussed at 16 June meeting of the European Economic and Financial affairs council( ECOFIN) in Luxembourg. A number of member states gave their comments on the proposal and the general consensus from that meeting is that there is an overall agreement to the principles outlined in the ViDA proposal. However, a number of concerns were raised by Member states around the following areas:

Timelines: For both single VAT registration (2025) and e-invoicing ( 2028) the issue here being that the deadlines were tight for both business and the tax administrations given the technical developments involved. This follows on from previous concerns raised a number of weeks ago by ECON who recommended a 1 year delay to the proposals.
E- invoicing/digital reporting: Member states should have more flexibility with respect to e invoicing and digital reporting in respect of domestic transactions. A number of member states are not in agreement with pre clearance model/validation checks for e-invoicing.

Platform Economy: Concerns around the distortion of competition and neutrality were raised by a number of member states with others calling for more reporting being imposed on the marketplaces.