European Commission to extend EU’s tax transparency rules to digital platforms amid COVID-19 pandemic

The European Commission has adopted a new tax package to ensure that the EU tax policy supports Europe’s economic recovery from the pandemic and long-term growth. The new package considers the extension of European Union tax transparency rules to digital platforms including the modernisation and the update of Value-Added Tax (VAT) rules to fit the digital economy, the amendment of VAT Directive to move towards a single EU VAT registration system. Also, the Commission seeks to combat VAT fraud by supporting Eurofisc to improve the use of technology and information sharing between Member States.