- Official Publication and Key Pillars: On March 25, 2025, the EU published the VAT in the Digital Age (ViDA) legislative package, marking a significant overhaul of VAT compliance. ViDA focuses on three key pillars: Digital Reporting Requirements (DRR) for electronic invoicing, expansion of the One-Stop Shop (OSS) for VAT registration, and new VAT rules for the platform economy.
- Implementation Timeline: ViDA will take effect on April 14, 2025, with several key milestones: the OSS will be expanded by January 1, 2027, to include energy supplies, and by July 1, 2028, it will cover all B2C transactions. Mandatory e-invoicing and real-time reporting for intra-EU B2B transactions will begin on July 1, 2030.
- Impact on Businesses: While ViDA aims to simplify compliance and enhance fraud prevention, businesses must prepare for new obligations, including IT system upgrades for real-time reporting and adapting to the deemed supplier model for digital platforms. The transition offers an opportunity to streamline VAT processes, but challenges remain, particularly regarding the lack of a unified technical reporting channel across member states.
Source VATconsult
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