Estonia continues to block the directive on VAT (value added tax) in the Digital Age (‘ViDA’), according to a European source contacted by Agence Europe on Wednesday 12 June. However, European finance ministers are expected to reach an agreement (‘general approach’) at the next Ecofin Council, which is due to be held on Friday 21 June in Luxembourg.
Estonia explained the reasons for its veto on VAT for digital platforms at the last Ecofin Council in May (see EUROPE 13409/2). “The Presidency has made a small overture to Estonia with regard to the administrative burden”, explained the source. Belgium has proposed changes to Article 28A-5, which covers persons liable to VAT who are acting on behalf of another person in the case of a supply of services.
Although there is a consensus on this change, “it is still not enough for Estonia”, which is insisting on its proposal for an opt-in system. Estonia has also suggested splitting the package, something that many delegations have refused to do. The Presidency is therefore continuing bilateral negotiations with Estonia. (Original version in French by Anne Damiani)