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ViDA proposal vetoed for a second time

Tuesday 2nd July, 2024

Estonia has vetoed the VAT in the Digital Age (ViDA) proposal for a second time at the recent Economic and Financial Affairs Council (ECOFIN) meeting on 21 June 2024.

There were high hopes until the last minutes that the VAT in the Digital Age (ViDA) proposal would be approved under the Belgian presidency of the EU Council. Overall, the Member States agree on Pillar 1 - E-invoicing and Digital Reporting Requirements (DRR) and Pillar 3 - Single VAT registration of the ViDA proposal. According to a blog item from Pagero.

Estonia vetoed the proposal for the second time due to reservations about Pillar 2 - Platform Economy. The previous vote was on 14th May 2024.

Hungary has signalled that they will continue working to find a compromise on the proposal and aim to have it approved during their 6-months term. Furthermore, with the recently held elections to the European Parliament, there might be a need for the newly elected Parliament to be consulted again on the VIDA proposal since the bill has undergone many changes since its first publication.

As such, there will probably be new negotiations on the proposal during summer and autumn before a decision is expected at the end of 2024. 

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