ARTICLE · 05 DECEMBER 2024

VAT In The Digital Age Package

Grant Thornton Malta

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On the 5th of November 2024, the European Council approved a set of measures designed to modernise the EU's value-added tax (VAT) framework for the digital era. The legislative package includes new regulations.

MaltaTax

Grant Thornton Malta

On the 5th of November 2024, the European Council approved a set of measures designed to modernise the EU's value-added tax (VAT) framework for the digital era. The legislative package includes new regulations for electronic invoicing, real-time data reporting, and transactions conducted via digital platforms. These changes aim to combat tax fraud, support businesses, and advance digitalisation.

After nearly two years of negotiations, the Council has reached an agreement on the VAT reform package, marking a pivotal step in the EU's digital transition, and strengthening its competitiveness. The new rules modernise VAT systems to align with the digital economy, enhance efforts to combat VAT fraud, and simplify administrative requirements for small businesses and individual service providers.

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