Seven leading European tourism organisations representing short-term accommodation and passenger transport platforms, as well as tourism operators demand a review of the EU’s proposed VAT platform rules.
On 8 December, 2022 the European Commission published its draft proposal on “VAT in the digital age,” kicking off the special legislative procedure scrutinised by the Council of the EU to decide on future VAT rules at the EU level.
The VAT in the digital age package aims to update the EU’s VAT rules in light of developments in the platform economy. Among its contents is the so-called deemed supplier regime, which would oblige short-term accommodation and passenger transport platforms to account for, collect and remit the VAT on behalf of providers. This would increase prices for consumers by around 20% and in many cases (e.g. simplified VAT schemes) generate double taxation.
Ahead of an EU Finance Minister debate on this topic on 16 June, a group of organisations representing European homeowners, short-term accommodation, and passenger transport platforms, as well as small travel and tourism operators have written a public letter to EU governments to express their concerns.
“We believe the deemed supplier regime is a solution in search of a problem, which will unfairly disadvantage services sold through platforms, lead to double taxation, hurt private providers seeking to supplement their income, make it nearly impossible for SME platforms to implement, and raise prices across the board in the travel sector. We urge Member States to rethink the current approach and conduct a thorough analysis of the deemed supplier regime’s impact, before moving ahead with the negotiations in the Council.”
Industry statement on ViDA
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
