- Approval After Extensive Deliberation: The latest version of the ViDA proposal has been approved after extensive discussions and revisions, focusing primarily on adjusting timelines to clarify the proposal’s implications and its future impact.
- Core Objectives: The proposal continues to focus on three main pillars: Single VAT Registration, the Platform Economy, and Digital Reporting Requirements (DRR). Notable timeline adjustments include deferring the implementation of the One-Stop Shop (OSS) and reverse charge mechanism requirements to 2028, and delaying platform economy provisions targeting hospitality and transport services until 2030.
- Electronic Invoicing and Reporting Updates: Key changes include the elimination of the need for Member States to request a derogation for implementing mandatory electronic invoicing, the introduction of DRRs for both domestic and cross-border transactions, a revised definition of an electronic invoice, adjusted timelines for invoice issuance and reporting obligations, and clarification on the future of existing Continuous Transaction Controls (CTC) mandates. The removal of the derogation requirement for mandatory e-invoicing is expected to take effect immediately after the proposal’s approval.
- Implementation Timelines: By 2030, cross-border transactions will be subject to mandatory DRRs, while Member States will have the option to apply DRRs to domestic transactions. Countries with CTC systems implemented before January 1, 2024, must align their models with the proposal’s requirements by 2035.
- Next Steps: With the European Council’s endorsement secured, the proposal will now advance to the European Parliament for further deliberation. Representatives of several Member States highlighted the importance and scope of the agreement as the ECOFIN meeting concluded. Further information on global e-invoicing changes and upcoming regulations is available for those interested.
Source Comarch
See also
- BREAKING: ECOFIN approved the VAT in the Digital Age (ViDA) Act – Compromise has been reached
- ViDA – Consolidated version of the EU VAT Directive 2006/112/EC once ViDA Act will be enacted
- Newsletters on approval of VAT in the Digital Age
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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