- ViDA Overview: VAT in the Digital Age (ViDA) is a significant reform package proposed by the European Commission to modernize the EU’s VAT systems, aiming to streamline processes, reduce administrative burdens, and combat tax fraud, particularly in the growing digital economy.
- Key Benefits: ViDA introduces Digital Reporting Requirements (DRRs) for real-time reporting of cross-border transactions, enhancing fraud prevention and simplifying compliance for businesses, especially small and medium-sized enterprises (SMEs) by allowing a Single VAT Registration (SVR) across EU Member States.
- Support for Businesses: The Commission plans to assist businesses in adapting to ViDA by mandating electronic invoicing for cross-border transactions by July 2030, offering seminars and working groups for stakeholder engagement, and ensuring a uniform reporting format across the EU.
- Positive Reception: ViDA has been well-received by EU Member States and businesses, with expectations of reducing VAT fraud by €11 billion annually and decreasing compliance costs by €4.1 billion, while also ensuring platform providers in the sharing economy collect and remit VAT.
- Next Steps: The proposal is set for adoption by EU Finance Ministers after further consultation with the European Parliament, with ongoing efforts focused on developing secondary legislation and technical frameworks to support the implementation of ViDA.
Source ec.europa.eu
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