The EU has adopted the ViDA package in March 2025. The ViDA marks an important step to more digitized VAT system in the EU. The ViDA will change VAT compliance of businesses operating in the EU.
ViDA in short
ViDA contains three main parts. Please see a short overview below, for more information on ViDA, please read our article “What ViDA means for your business?".
1. E-invoicing and real-time reporting
Most importantly, e-invoicing becomes the new standard for intra-EU transactions from 1 July 2030. There will be an obligation to:
- issue structured e-invoices including all required data in standard format within 10 days from a chargeable event; and
- transmit data from these invoices to the relevant national VAT authority’s electronic portal in real time.
The proposed changes mean that not only will sellers be obliged to issue e-invoices, but buyers should be able to receive e-invoices. Sellers and buyers also should report their transactions to the authorities in real time. Furthermore, businesses should be able to issue and/or receive invoices meeting various existing or new domestic e-invoicing/digital reporting requirements.
2. Extension of OSS
The extension of the One-Stop-Shop (OSS) on 1 July 2027/2028 aims reducing of the VAT registration obligations for businesses in various EU countries and possibility to report movement of goods within the EU via a single (OSS) VAT registration.
Furthermore, the domestic reverse charge will apply for all B2B supplies of goods and services made by non-established if the customer is registered for VAT in the EU country where the VAT is due.
3. Extended obligations for certain platforms
From 1 January 2030 (optionally from 1 July 2028), a deemed supplier rule is introduced for platforms operating in passenger transport and short-term accommodation sectors. The proposed rules increase the administrative burden for such platforms and the VAT burden for small businesses or individuals who operate via such platforms.
How we can assist to prepare your business for the ViDA
We can assist your business to understand how ViDA impacts you and to prepare for changes.
- Introductory workshop: informing you about main ViDA changes relevant for your business.
Workshop will familiarize you with main VAT changes ahead and their high-level impact to your business.
- ViDA scan: analyzing impact of ViDA to your business.
Mapping your business transactions, assess software and evaluate impact of ViDA to your business.
- Roadmap for action: identifying steps required to meet ViDA requirements and timeline for required actions.
Identifying action required to meet ViDA requirements. We will draw a plan how to prepare your staff and systems for ViDA.
- Implementation of the ViDA roadmap: implementing the required changes.
Assisting you to prepare for the ViDA requirements.
High-level timeline ViDA
- Early 2025 (20 days from adoption of the ViDA): EU Member States may oblige businesses to issue e-invoices for domestic supplies without approval of the European Commission.
- 1 January 2027: Updates in the e-commerce package; OSS extension to supplies of electricity, gas and heat.
- 1 July 2028: Single VAT registration (extension of the OSS to all B2C supplies, stock transfers and application of the mandatory reverse charge) and voluntary implementation of the deemed supplier rule to accommodation and mobility platforms.
- 1 January 2030: Extended VAT obligations for platforms: mandatory implementation of the deemed supplier rule to accommodation and mobility platforms.
- 1 July 2030: Mandatory Digital Reporting Requirements (DRR) based on e-invoicing for B2B intra-EU transactions and transactions subject to the mandatory reverse charge; harmonization of domestic e-invoicing (except these existing before 2024) with EU standards.
- 1 January 2035: Harmonization of pre-2024 existing domestic e-invoicing with EU standards.
For more information on ViDA please contact our VAT team.
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