EU to Hike VAT on Sharing Economy Platforms
EU members have reached an agreement on value-added tax (VAT) rule changes that would result in hikes for sharing economy platforms, including short-term rental platforms, after Estonia dropped its previous veto position. The EU wants to digitize invoicing for VAT and force platform services to register to pay the levy. As part of the EU agreement, a redrafted text will include a longer transition period, meaning that the online platform rules will become voluntary in July 2028 and mandatory from January 2030. Consequently, online sharing economy platforms will be directly responsible for registering for the tax, rather than relying on consumers or property owners to do so.
ShortTermRentalz (10/31/24) Paul Stevens
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