Challenges related to determining for VAT purposes the status of the goods and services provider using the platform economy

Abstract

Background: The aim of the study was to analyse EU legislation and case law on the VAT status of the provider of goods and services for the platform economy. This issue is becoming increasingly important in the context of a rapidly developing platform economy, using the latest technological developments. The study conducted a comprehensive legal analysis of the issue, at the same time drawing attention to the doubts that exist particularly due to the lack of CJEU judgments on the concept of a taxable person in the platform economy.

Research purpose: The aim of the study was not only to assess the relevant legislation or its interpretation, but above all to draw attention to the need to fill the legislative gap in the area studied, which has led, and may continue to lead, to non-uniform application of VAT rules in the EU Member States.

Methods: The study was carried out predominantly using the empirical-dogmatic method, backed by a historical method and comparative method.

Conclusions: Our analysis demonstrated that the provisions of the VAT Directive do not simply and clearly regulate whether a platform provider is a taxable person. There is also a lack of CJEU jurisprudence addressing this issue; judgments on the ‘traditional’ economy do not seem to ‘fit’ the specifics of the platform economy. In our opinion, legislative changes are needed, especially the VAT Directive, which would take into account the specifics of transactions in the platform economy. We present preliminary proposals that can be taken into account in the legislative work on the European Commission’s recently proposed provisions in this area.