European General Court Issues Order on VAT Rules for Digital Age Affecting Short-Term Accommodation Rentals

The European General Court (EGC) Jan. 21 issued an order in Case No. T-393/25 concerning VAT rules for the digital age affecting short-term accommodation rentals. The taxpayer, an Italian association of private property owners, sought annulment of specific provisions of Council Directive (EU) 2025/516 and Council Implementing Regulation (EU) 2025/518, which introduce the deemed-supplier model and redefine facilitation services. On appeal, the EGC dismissed the action as inadmissible, holding that the taxpayer failed to demonstrate: 1) direct concern, given that the VAT rules apply to taxable platform operators, not to property owners; and 2) individual concern, given that the provisions ...