Council of the European Union 11 March 2025, Council Directive (EU) 2025/516 of 11 March 2025 amending Directive 2006/112/EC as regards VAT rules for the digital age

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Council Directive (EU) 2025/516 of 11 March 2025 amends Directive 2006/112/EC to modernise the EU VAT system for the digital age, with the principal objectives of reducing the VAT gap, combating fraud, and minimising multiple VAT registrations across Member States. Key provisions introduce mandatory electronic invoicing as the default method for documenting taxable transactions, establish transaction-based digital reporting requirements for cross-border intra-Community supplies between taxable persons (replacing recapitulative statements), and extend the deemed-supplier rule to online platforms facilitating short-term accommodation rental and passenger transport services by road. The Directive applies in phased stages between 2025 and 2035, with Member States required to transpose successive sets of provisions by specified deadlines, and includes a special scheme for transfers of own goods to further support the objective of single VAT registration within the Union.AI