European Union: Legislative resolutions adopted on VAT digitalization and tax cooperation
On April 29, the Official Journal of the EU released resolutions P10_TA(2025)0012 and P10_TA(2025)0013, implementing changes to VAT procedures and tax administration coordination within the EU. The updates are part of efforts to align EU legislation with the OECD Pillar Two framework and include the following measures:
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Implementation of digital reporting requirements to harmonize VAT reporting and information exchange.
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Revision of VAT rules related to the digital platform economy.
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Introduction of a single VAT registration system for businesses selling across the EU.
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Establishment of common e-invoicing standards across EU Member States to facilitate cross-border trade.
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Simplification of the top-up tax return process for multinational enterprise (MNE) groups and large domestic groups through a standardized filing format.
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Introduction of rules for automatic exchange of top-up tax information among tax authorities.
These changes aim to modernize tax compliance and support greater transparency and cooperation among EU Member States.
Source: europa.eu
