VAT IN DIGITAL AGE PACKAGE ADOPTED
On 11 March 2025, the European Commission adopted the VAT in the Digital Age (ViDA) package, aiming to modernise and streamline the EU's VAT system. This comprehensive reform will be implemented progressively until January 2035.
Member States can now introduce mandatory e-invoicing under specific conditions, enhancing the Import One-Stop-Shop (IOSS) framework for better control. From 1 January 2027, minor legislative clarifications will affect users of the One-Stop Shop (OSS) and IOSS schemes.
From 1 July 2028, platforms facilitating short-term accommodation rentals and passenger transport must adhere to new deemed supplier measures. At the same time, Single VAT Registration reforms and mandatory reverse charge mechanisms for non-identified suppliers will be introduced.
From 1 July 2030, Digital Reporting Requirements will be enforced for cross-border B2B transactions. Finally, by 1 January 2035, Member States with domestic digital real-time transaction reporting obligations must align their systems with EU standards, marking the final phase of the ViDA package.
Source: European Commission