39th VAT Expert Group Meeting Summary

The 39th VAT Expert Group meeting on 26 March 2025 focused on enhancing the EU VAT system. Here is a summary of the discussion points as outlined in the minutes released on 15 April 2025.

Study on VAT Challenges Beyond ViDA

• Simplification: The group discussed VAT exemptions, deductions, special schemes, standardisation, classification, common interpretation, and extending Single VAT Registration.
• Digitalisation: post-ViDA opportunities were emphasized alongside digitally-enabled reforms, emerging technologies, and VAT in a digital future.
• Environmental Aspects: The group addressed unintended VAT burdens, consumer behaviour distortions, VAT on second-hand goods, donation vs. destruction of goods, and VAT preferential treatment.

ViDA Implementation

• Members gave an update on digital reporting requirements and electronic invoicing, including guidelines preparation and upcoming workshops.
• The minutes outline the process for explanatory notes and consultation periods.
• An overview of the Single VAT Registration implementation plan, including securing IOSS, improving VAT e-commerce rules, and new SVR provisions was provided.
• An update on progress of the IOSS project group was provided, with pilot testing expected from Q3 2025 to Q3 2026.

New SME Scheme Implementation

• The minutes give an update on the state of play, noting delays in some Member States. Focus on completing national rules information and delivering a VAT simulator.

The next meeting is scheduled for 27 June 2025.

Key takeaway

Details of the minutes can be read here: Circabc. The world of VAT is under constant evolution. Staying well informed of planned developments to anticipate and prepare for changes is key. Making sure that legal aspects related to those changes are covered is crucial.