EU ViDA Platform Economy Workshop Overview
The European Commission’s Fiscalis Workshop, held in Madrid on 17–18 September 2025, gathered around 80 participants from 27 Member States, including members of the VAT Expert Group (VEG) and representatives from the platform economy.
Focus on Pillar 2 of ViDA Package
The event assessed the progress and challenges related to Pillar 2 of the VAT in the Digital Age (ViDA) package. The focus was on the implementation of the Deemed Supplier Mechanism (DSM) for the platform economy and the upcoming explanatory notes.
This Pillar will transition from voluntary status in July 2028 to mandatory compliance from January 2030.
Workshop Purpose and Outcomes
The workshop aimed to foster dialogue between tax administrations and the digital economy, emphasizing the importance of balanced input from both groups.
Participants agreed that the explanatory notes, expected in draft form by the first quarter of 2026, should provide clear and practical guidance for uniform implementation across the EU.
Following the event, businesses and Member States were invited to submit further feedback within two weeks.
Key Mechanism: Deemed Supplier Mechanism (DSM)
Under the DSM, online platforms may be regarded as suppliers for VAT purposes when facilitating certain transactions, especially in short-term accommodation and passenger transport sectors.
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Summary
The Fiscalis Workshop highlighted the critical need for clear guidance on the Deemed Supplier Mechanism as the EU prepares for mandatory VAT rules in the platform economy starting 2030.