The European Commission has released its Implementation Strategy for the VAT in the Digital Age (ViDA) package, aimed at modernising the EU’s VAT system, strengthening the fight against fraud, and addressing tax challenges in the platform economy.
The reform package covers three pillars: Digital Reporting Requirements (DRR), Platform Economy, and Single VAT Registration (SVR). Under the new rules, e-invoicing will become the default method across the EU and mandatory for cross-border B2B transactions from 2030 onwards.
According to Commission estimates, ViDA is expected to deliver net benefits of EUR 172–214 billion over the next decade, including EUR 51 billion in savings for businesses. The digital reporting shift alone is projected to reduce VAT fraud by up to EUR 11 billion annually.
In the platform economy, digital platforms providing short-term accommodation and passenger transport services will be required to collect and remit VAT when individual providers or small businesses do not. This measure is intended to ensure fair competition across all Member States.
Timeline Highlights
- 14 April 2025: Package enters into force, enabling Member States to mandate e-invoicing.
- 1 January 2027: Improvements for OSS and IOSS schemes take effect.
- 1 July 2028: Platforms face new deemed supplier obligations, while SVR reforms begin.
- 1 July 2030: DRR provisions make e-invoicing mandatory for cross-border trade.
- 1 January 2035: Member States’ domestic systems must fully converge with EU-wide reporting.
The Commission emphasized that continuous dialogue with businesses and Member States will be key to ensuring a smooth rollout of ViDA measures