ViDA and VAT modernisation

Changes for online platforms

From July 2028, online platforms will be treated as the actual service provider for Value-Added Tax (VAT) purposes if they facilitate the supply of:

• short-term accommodation
• or
• road passenger transport services.

This means that the platform, as a “deemed supplier”, will be responsible for charging and returning VAT on these supplies. If the service provider has a VAT number and provides this to the platform, the service provider is responsible for the VAT. Service providers include hosts and drivers.

This obligation is dependent on the VAT rules operating in the European Union (EU) country in which the service is provided. For example, passenger transport in Ireland is exempt from VAT.

Member States will have the option to delay the implementation of these changes until January 2030. They will also have the option to exclude small businesses eligible for the special scheme for small enterprises (SME scheme) from the deemed supplier provisions. Ireland is currently considering its position on these issues. 

Next: Changes to reduce the need for multiple VAT registrations