At an Ecofin meeting in Brussels, European finance ministers thus failed to reach an agreement to require these platforms to be responsible for collecting and delivering VAT to tax authorities when service providers do not, in an initiative created to avoid advantages over traditional competitors, such as taxi companies and hotels. European sources reported that, being a tax issue that requires unanimity in the EU, the proposal (made by the European Commission in December 2022) on VAT on digital platforms did not move forward mainly due to opposition from Estonia, the country where Bolt is headquartered, a technology company that provides mobility services, vehicle and scooter rentals, and food delivery. The idea is to have the platforms as the sole interlocutor in fulfilling tax obligations, which are now paid in the country where the activity is provided and not at the headquarters, in order to avoid tax evasion and increase VAT revenue for the Member States, with the entry into force scheduled for 2027. If it goes ahead, the measure could lead to price increases in the EU and also burden the tax authorities of the Member States, argue the countries that are currently against the proposal, such as Estonia. In December 2022, the European Commission presented a package to modernise the VAT system in the EU, aiming to introduce "a more level playing field between online and offline short-term accommodation services", as it announced at the time. The platform economy has grown significantly in recent years, with these technologies acting as intermediaries between providers of certain services and consumers. Under current European VAT rules, it is the underlying service providers - for example, the person renting an apartment - who are required to charge and pay this tax to the tax authorities. However, many of these underlying providers - whether they are individuals or small businesses - are unaware that they may be subject to VAT on the services they provide and, even when they are aware, they sometimes fail to comply, a situation that Brussels wants to change. Nevertheless, a preliminary agreement (on a general approach) on safer and faster procedures to alleviate double taxation was approved at the Ecofin meeting, aiming to boost cross-border investment and help combat tax evasion. To this end, this proposal - which has yet to be formally adopted - provides for safer and more efficient withholding tax procedures for cross-border investors, national authorities and financial intermediaries (such as banks or investment platforms). At the moment, there are situations such as investing in one Member State and paying taxes in another, which makes taxation and refunds difficult. The proposal was presented in June 2023 and is subject to a special legislative procedure, in which the Council is the sole legislator (by unanimity) after consulting the European Parliament, and the European assembly will be heard again on the amendments now introduced by the Member States. To enter into force, the text must then be formally adopted and the countries must then transpose the directive into national law by 31 December 2028, although the national rules will only be applicable from 1 January 2030. Read Also: Dívida pública? Houve um "erro muito grave" por parte da UTAO, diz Medina (Portuguese version)