It is a key initiative of the European Commission aimed at modernising and harmonising the VAT system in the digital era. The draft directive, presented in December 2022, aims to increase the resilience of the system against fraud and facilitate adaptation to the digitalisation of trade. Fundamental changes include the obligation of electronic invoicing or the introduction of digital reporting of transactions in near real time. The new rules also specify obligations for platforms facilitating accommodation and transport services. Overall, the draft directive seeks to unify VAT rules for cross-border transactions, leading to a definitive VAT system across the EU. You can find more information in our new post here.