Executive summary

The Value Added Tax (VAT) Expert Group (VEG) of the European Commission has published the minutes of its 42nd meeting, which took place on 13 March 2026. The meeting included discussions on the explanatory notes on the platform economy, one-stop-shop (OSS) guidelines on single VAT registration (SVR) and digital reporting requirements related to the implementation of the VAT in the Digital Age (ViDA) package.

For details ofnthis package, see EY Global Tax Alerts: European Commission publishes minutes of 51st meeting of the Group on the Future of VAT, concerning the VAT in the Digital Age (ViDA) package, dated 16 April 2026; EU Council approves VAT in the Digital Age (ViDA) package, dated 12 March 2025; and EU details on VAT in the Digital Age (ViDA) package, dated 7 November 2024.

Platform economy

The meeting included a discussion of VEG No 133: First draft Explanatory Notes on Platform economy.

European Union (UN) Commission services (i.e., the European Commission) introduced the first draft of the platform explanatory notes, explaining that this was a collaborative and ongoing process and that examples and diagrams would be added in later drafts. Commission services drew the VEG members' attention to the treatment of chain transactions, the obligation of the underlying supplier to provide a VAT number if the supplier had one, and the distinction between the deemed supplier regime (DSR) and the tour operator margin scheme (TOMS).

Comments received from members included suggestions around:

• The need to provide more examples — in particular relating to chain transactions
• The need for Member States to provide information in good time
• The need for further clarity on distinctions between:
  • TOMS and the DSR (such as examples of when a platform is "acting in their own name" and when it is not)
  • Article 28 and Article 28a
  • DSR and OSS
• The need for examples of the kind of validation of the VAT identification number the platform is required to carry out (and a "safe harbor" principle)
• How to deal with other forms of passenger transport (rickshaws, horse/cart etc.)
• How to deal with adjustments
• How to deal with platforms acting as deemed supplier when they should not be, based on erroneous information from the underlying supplier
• How to deal with the declaration by the underlying supplier to the platform
• How smaller platforms will be made aware of their obligations

OSS guidelines on SVR

The meeting also included a discussion of VEG No 134: First draft Explanatory Notes and OSS guidelines on SVR, applicable for changes from 1 January 2027.

Commission services introduced the first draft of the SVR Explanatory Notes and OSS guidelines with regard to the changes from 1 January 2027, which in this first phase are technical in nature. The meeting emphasized that this constituted only an update and that a comprehensive review and redrafting would take place at a later stage regarding the main changes that will enter into force as from 1 July 2028.

There was a brief discussion about validating a trader's VAT status, specifically in the context of requests to accelerate the upgrade of the VAT Information Exchange System (VIES) on the web, including the suggestion to address this issue in the explanatory notes.

The Commission emphasized that, since 2021, providing a VAT number to the supplier should be sufficient. The discussion also covered the list of affected traders, including the possible addition of the supplies to the "group of 4" under the deemed supplier provision in Article 14a2, as well as updates on the progress toward securing the IOSS.

Digital reporting requirements

Finally, the meeting included a discussion of VEG No 135: Second draft Explanatory Notes on DRR (Digital Reporting Requirements).

Commission services presented the second draft of the explanatory notes on Digital Reporting Requirements (DRR), stressing that this is still a work in progress. In relation to the input that members of the VEG provided to the first draft, Commission services thanked the members for their contribution and explained that the assessment of that input was not finished yet. Some comments had already been taken into account, while others still required further reflection on the Commission side.

The main points raised included:

• Provide a general presentation on how e-invoicing and DRR interact to help taxpayers understand how the whole system works.
• Clarify how the transmission of e-invoices can take place.
• Clarify whether Member States can impose other invoice formats for transactions not covered by DRR.
• Clarify how to report the nature of the goods in case of sensitive goods.
• Explain the treatment of hybrid invoices on intra-Community supplies and whether they have to be subject to agreement between the parties.
• Clarify how the issuance of invoices relates to the process of performing controls on e-invoices, and ensure consistency in using formats that are both compliant and conformant with the EU standard throughout the document.
• Clarify the use of the Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT).
• Clarify how the right to deduct can be exercised if the supplier failed to comply with the obligation to issue an e-invoice.
• Explain the criteria for sanctions and penalties, in particular during the period when the new rules first apply.
• Explain how the new rules on DRR interact with the reform of VIES.
• Explain the need to conduct extensive testing before the rules' entry into force.
• Ensure interoperability for the transmission of e-invoices across borders.
• Explain how e-invoices should be issued in the case of continuous supplies.
• Clarify the scope of Article 273 and what is allowed for Member States in the field of reporting obligations.
• Clarify which Member State should receive the reported data.
• Define what a transaction is for the purposes of reporting.
• Explain how to report the VAT rate and VAT amount payable if these fields are not included in the e-invoice.
• Explain which fields, such as document type, are mandatory for the standard even if the VAT Directive does not require them.
• Explain how the e-invoice should be issued if the customer has not communicated its VAT number.
• Explain the impact of the rules for transactions with non-EU suppliers/customers.
• Further consider e-invoicing and reporting for domestic supplies and their interaction with the rules in Article 218 of the VAT Directive.
• Clarify whether it is possible to use extensions in domestic and intra-EU transactions and whether these transactions are subject to agreement between the parties.

Other business

Commission services came to the conclusion that the acquisition of Carbon Border Adjustment Mechanism (CBAM) certificates cannot be assimilated to taxes, duties and other charges to be included in the taxable amount at import. CBAM is not aimed at raising revenue; it is a regulatory market measure.

VEG members requested that Commission services consider including exempt educational services among the transactions for which there is the option for taxation (referred to as "opt to tax"). This would allow providers of exempt educational services to opt to tax these transactions.

The possible extension of Article 199a and 199b of the VAT Directive is being assessed. If there is a decision to extend the measure, it will take place before the end of the calendar year.

Commission services are reflecting on a proposal related to the green economy, but at this stage it is not possible to provide further information.

Next steps

The European Commission requested that VEG members provide written comments on the Platform Economy and DRR drafts by 10 April 2026.

A joint VEG and Group on the Future of VAT (GFV) meeting is planned for 28 May 2026 (still to be confirmed) to present studies on VAT challenges beyond the ViDA package and on financial services. An additional joint online meeting with the VEG and GFV is scheduled for 25 June 2026 to discuss updated versions of the explanatory notes, with a final meeting planned for 19 November 2026 to complete the notes for publication in 2027.

Implications

Multinational enterprises should closely monitor the evolving VAT guidance on the platform economy, SVR and DRR as part of the EU's ViDA package. Future clarifications and forthcoming detailed explanatory notes will impact compliance obligations, particularly regarding VAT validation, DSR and e-invoicing processes. Early engagement with these developments will help businesses prepare for the technical changes effective from 1 January 2027 and beyond, providing smoother adaptation to new VAT reporting and registration frameworks.