VAT & THE PLATFORM ECONOMY: EU FRAMEWORK AND SOUTHEAST EUROPE’S COMPLIANCE STRATEGY
New business models, born and further sophisticated through digital technology, have significantly affected and redefined the digital economy, leading to the phenomenon known as platformization. In December 2022, the EU introduced the “VAT in the Digital Age” (ViDA) initiative, highlighting platform economies as a crucial area for VAT system modernisation. The impact of platform economies on indirect taxation cannot be ignored, especially in Southeast Europe. This paper examines the transformative role of platformization—where new business models are developed through digital technology—on VAT compliance with the aim to explore the concept and role of the platform economy in relation to VAT taxation, highlighting the challenges it poses to the existing tax framework and examining emerging trends in VAT treatment of the platform economy within the EU and its impact for Southeast Europe, particularly on countries with EU candidate status. Key recommendations include simplified compliance regimes, regional cooperation, and adapting tax frameworks to the digital economy. These strategies aim to optimise VAT compliance and support economic growth in Southeast Europe’s evolving platform economy
Keywords: Platform Economy, VAT Compliance, VAT Treatment of Platform Economy.
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