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Image header Agence Europe
Europe Daily Bulletin No. 13405
ECONOMY - FINANCE - BUSINESS / Taxation

Estonia could block an EU Council agreement on value added tax in digital age

The Member States’ ambassadors to the EU (Coreper) will discuss, on Wednesday 8 May, the agreement on value added tax (VAT) in the digital age (ViDA). A political agreement has been announced for the next Ecofin Council on Tuesday 14 May.

According to a European source contacted on Monday 6 May, a dossier containing the three legislative proposals will be presented to the ministers for political agreement. Formal adoption will come later. A balanced compromise has been reached on the three acts, “but there is one Member State that cannot accept the compromise”, said the source. As a result, the Belgian Presidency will try to reach an agreement before or on the day of the Ecofin meeting.

According to another European source contacted on the same day, Estonia is still not satisfied with the text. It does not want digital platforms to be considered as presumed service providers. The initial proposal provided for the introduction of a specific regime in the short-term accommodation rental and passenger transport sectors. In the progress report published in December, several Member States asked for greater flexibility on this point (see EUROPE 13309/14). (Original version in French by Anne Damiani)

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