EU Outlines VAT in the Digital Age (ViDA) Implementation Plan
The European Commission has outlined its strategy for implementing the VAT in the Digital Age (ViDA) reforms. The plan, published recently, includes step-by-step implementation, regular checkpoints, and enforcement mechanisms. Key dates and measures have been set to modernise VAT systems across the EU.
The ViDA package, adopted on 11 March 2025 and effective since 14 April 2025, aims to tackle VAT fraud and simplify digital reporting. The Commission has proposed a phased approach:
- Single VAT Registration will commence on 1 January 2027, with further extensions in 2028.
- Mandatory e-invoicing and real-time digital reporting for intra-EU B2B transactions will apply from 1 July 2030.
- Member states must align domestic digital reporting systems with EU-wide DRR standards by 1 January 2035.
Delays in IT readiness by some member states may impact real-time invoice data exchange initially. However, a communication plan will launch 6-9 months before each main milestone to keep businesses and citizens informed.
New platform VAT rules for accommodation and transport services will apply by 1 July 2028, or 1 January 2030 for member states opting for a delay. As of now, no specific EU countries have announced using this delay option.
The Commission's ViDA implementation strategy provides a clear roadmap for modernising VAT systems across the EU. Key dates and measures aim to simplify digital reporting and combat VAT fraud. Businesses and citizens can expect regular updates and guidance to ensure consistent application of ViDA rules.
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