VATupdate Newsletter Week 16 2025

DREAMCAR

In recent years, there’s been a clear push to “go green” and embrace electric cars. Every major car manufacturer is rolling out shiny new electric models with promises of zero emissions and a cleaner future. Sure, these vehicles come with plenty of perks—like reduced carbon footprints, lower running costs, and government incentives—but let’s talk about the elephant in the room: they are ugly.

I mean, honestly, when did cars stop being cool? Electric cars all seem to look the same. They’re large, blocky, and… well, bland. It’s like someone took a basic car template, threw in a few extra batteries, and called it a day. Ask any small kid to make a drawing of a car, and they will not draw an SUV-shaped model with 7 seats in it. Or maybe they will, if they have their parents helping them with it… (sorry, that’s a rant for another time…)

All new cars look the same. And what’s up with the weight? These electric beasts are heavier than a sumo wrestler after a buffet. It’s as though they’ve traded the coolness factor for a set of lead-filled batteries. Let’s not even talk about the sound. Remember that satisfying roar of a classic car starting up? The purr of an engine that made you feel like you were ready to take on the world? Well, that’s all gone. Instead, you’ve got the sound of silence—except for a faint buzz, like a mosquito stuck in your ear. Where’s the excitement? Where’s the drama?

But, of course, I get it. The future is here, and the future is electric. The planet’s health depends on it, and it’s an environmentally conscious choice that’s hard to ignore. However, there’s a small part of me that’s nostalgic for the days when cars had personality, where they were an extension of who you were, not just an oversized smartphone on wheels.

It’s almost the same as with the VAT in the Digital Age legislation. Sure, the VAT rules needed an update, as we needed to catch-up with the technological and economic realities. The latest updates of the VAT rules were from 1993 (implementation of intra-Community transactions) and 2010 (new place of supply rules for services). With the Quick Fixes in 2020 and the One Stop Shop extensions in 2021, some small steps were made to improve and clarify the VAT rules, but ViDA would be the next step, similar to switching to an electric car.

Just like switching to an electric car—presumably better for the environment and a smoother ride—the ViDA legislation will be something we’ll have to get used to. It’s a transition, one that will likely be smoother for some, but for others, saying goodbye to the old VAT rules will be just as hard as parting ways with that cool, classic car. Let me know how you feel about it.

If you have any comments, questions, or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.

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