Update March 14, 2025
On 11 March 2025, the EU Council formally adopted the VAT in the Digital Age (“ViDA”) proposal giving the green light to significant changes to the EU VAT system in the coming years.
- Overview and Timeline: The ViDA proposal, aimed at modernizing the EU VAT system, has been formally adopted by the EU Council as of March 11, 2025, with key implementation dates set for July 1, 2028, for the Platform Economy and Single VAT Registration pillars, and July 1, 2030, for the E-invoicing and Digital Reporting pillar.
- Key Pillars: The proposal consists of three main pillars:
- E-invoicing and Digital Reporting: Mandatory e-invoicing and digital reporting for VAT will be required for cross-border B2B and B2G transactions starting July 1, 2030, with Member States allowed to impose e-invoicing for domestic transactions as early as April 2025.
- Platform Economy: Digital platforms will be treated as deemed suppliers for short-term accommodation and transport services from July 1, 2028, with specific conditions for VAT responsibilities.
- Single VAT Registration: Aims to simplify VAT registration for non-established traders in the EU, extending the One Stop Shop (OSS) regime to more B2C supplies by July 1, 2028.
- Impact on Businesses: Businesses will need to adapt their invoicing and VAT reporting processes significantly. They should start preparing for the upcoming changes and monitor varying implementation timelines across EU Member States, as some may introduce obligations before the official ViDA deadlines.
Published on November 6, 2o24
- On 5 November 2024, the 27 EU Member States reached unanimous political agreement on the VAT in the Digital Age (“ViDA”) proposal
- ViDA aims to modernize the EU’s VAT system with three pillars: E-invoicing and Digital Reporting, Platform Economy, and Single VAT registration
- The most significant implementation dates are expected to be 1 July 2028 and 1 July 2030
- Mandatory EU e-invoicing and digital reporting for VAT will be introduced, with structured e-invoices required for cross-border B2B and B2G supplies
- Data from e-invoices must be digitally reported to tax authorities, eliminating the need for periodic EC Sales Lists
Source: kpmg.com
See also
- 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
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
