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For platform operators facilitating in the supply of goods, the administrative VAT burden under the current rules is relatively small as a general rule. However, under the new rules, platforms will face complicated VAT rules and far-reaching administrative and data retention obligations. Under certain conditions, the facilitating platform will be deemed to be the supplier of the goods itself.
A typical platform facilitating the supply of goods for several suppliers will have to deal with many different VAT outcomes depending on the place where the goods are transported from, the place of establishment of the supplier, the value of the goods and the VAT reporting choices made. This means that platforms should be able to identify the details of every transaction that runs through the platform and set this up accordingly in their ERP system. The impact of the legislation for platform operators will depend on the exact set-up and agreements that are in place for the platform.
The new rules facilitate the reporting of the VAT in so-called One-Stop-Shop VAT returns. Platform operators are likely to make use of one or more of such systems depending on the place where the goods are transported from. Specific set-up is required in the system to facilitate the reporting obligations, e.g. by making a distinction between the country where the reporting needs to take place (the OSS reporting country) versus the country where the transaction is taxable (the tax reporting country).
We can assist you in the full end-to-end process, from identifying the exact impact of the legislation changes on your business model to assisting and implementing these changes in your ERP systems, including meeting the new and far-reaching administrative requirements for data retention. We can also help to implement the checks and balances the platform is expected to perform to determine the correct VAT treatment (even if the supplier would provide incorrect information).