Spain calls for early option to impose mandatory deemed supplier on ride & accommodation platforms
On 5th November 2024, EU finance ministers gave political agreement to VAT in the Digital Age reforms. Spain asked to include a statement in the minutes of its desire to be able to apply from an early derogation from the 1 July 2028 voluntary date to impose deemed supplier VAT collection obligations on accommodation sharing platforms. This is contained within Pillar 2, Platform Economy, of ViDA
Spain likely to ask to introduce the measure from 2027 instead of July 2028.
The ViDA package is due to be reapproved by the EU Parliament before ratification
Spain wants early VAT collections on home sharing platforms
The Spanish statement:
‘Spain supports the general approach reflected in the proposal regarding the deemed supplier model provided for in Article 28a of Directive 2006/112/EC (VAT Directive). However, it declares its willingness to apply such a model before the date of entry into application of this provision, as a simplification measure in the collecting of the VAT and as a way to improve the fight against fraud in the VAT, as foreseen in Article 395 of the VAT Directive.’
Under Art 395, EU countries may be authorised to derogate from common VAT rules to simplify the procedure for charging VAT or to prevent certain types of tax evasion or avoidance.
Spanish hoteliers back early adoption
The Spanish hotel association, HOTREC, has backed-up this proposal, issuing its own statement following the ViDA agreement:
“HOTREC welcomes today’s agreement on VAT in the Digital Age package specifically the increased VAT responsibilities for online platforms.
HOTREC is fully supportive of the deemed supplier model which will help to level the playing field in the accommodation market. We maintain our view that compared to traditional accommodation, such as hotels, the STR sector is still largely under-regulated or not regulated at all. The obligation for online platforms to collect and remit VAT will ensure minimum administrative burden on STR hosts and public authorities, while also helping to understand the black market and minimize tax evasion.
We hope that member states will:
· Speed up the implementation and introduce the obligation in national law earlier than in 2030.
· Apply the law to all STRs regardless of their size.”
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 pillars to improve efficiency of VAT for all and reduce fraud | |
| 1. Digital Reporting Requirements; e-invoicing | Jul 2030-35: Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| Structured e-invoices mandated for intra-community supplies | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| Withdrawal of EU permission requirements for e-invoicing | |
| 2 Platform economy | Jan 2030: Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation (voluntary Jul 2028) |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
| 3 Single VAT Registration; extension of OSS | July 2028: Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
