Global Daily Tax News, EU Guides On Ten-Year Implementation Of VIDA, (Sep 26, 2025)

The European Commission has published its implementation strategy for the VAT in the Digital Age (VIDA) package, setting out key implementation milestones for member states.

The VIDA package will modernize how VAT is administered across the European U ...

The European Commission has published its implementation strategy for the VAT in the Digital Age (VIDA) package, setting out key implementation milestones for member states.

The VIDA package will modernize how VAT is administered across the European Union and better utilize current technology to tackle fraud. VIDA has three main thrusts: e-invoicing, new VAT rules for the platform economy, and simpler value-added tax registration rules.

Specifically, the package will introduce the following three measures:

Uniform real-time digital reporting for VAT purposes based on e-invoicing for cross-border transactions, to provide member states with the information necessary to challenge VAT fraud;
New VAT collection responsibilities for platform economy operators in the passenger transport and short-term accommodation rental sectors, when the underlying supplier does not charge VAT; and
An expansion of the existing 'VAT One Stop Shop' model for electronic commerce companies, to further reduce the need for VAT registration in multiple member states.

Together, the reforms are expected to considerably reduce value-added tax revenue losses, with between one-third to one-half of these losses linked to missing trader intra-community (MTIC) fraud alone.

The new implementation strategy provides a roadmap with key action points and dates. These are listed as follows:

Since the entry into force of the VIDA package on April 14, 2025, member states are able to introduce mandatory e-invoicing rules under specific conditions. On this date, improvements were also made to the Import One-Stop-Shop (IOSS) framework;
From January 1, 2027, certain legislative clarifications for users of the One Stop Shop (OSS) and IOSS schemes will become effective. Further, certain single VAT registration (SVR) improvements will also apply from that date;
From July 1, 2028, platforms in short-term accommodation rental and passenger transport sectors must comply with new deemed supplier measures (unless the member state has opted to delay implementation to January 1, 2030). In addition, the main SVR reforms and mandatory reverse charge for non-identified suppliers will begin;
The Digital Reporting Requirements will affect cross-border B2B transactions from July 1, 2030, where e-invoicing will become mandatory and the default method for invoicing; and
By January 1, 2035, member states with a domestic digital real-time transaction reporting obligation must align their systems with the cross-border digital reporting system, marking the final phase of this comprehensive VIDA package.

The guidance released by the Commission on implementation is intended to assist member states to ensure the effective implementation of the different layers of requirements, and the development of necessary IT infrastructure in a timely manner.

The VIDA package is expected to generate substantial economic benefits, ranging from EUR172bn to EUR214bn over a decade, including a significant EUR51bn saving for businesses.

Global Daily Tax News, EU Guides On Ten-Year Implementation Of VIDA, (Sep 26, 2025)

The European Commission has published its implementation strategy for the VAT in the Digital Age (VIDA) package, setting out key implementation milestones for member states.

The VIDA package will modernize how VAT is administered across the European U ...

The European Commission has published its implementation strategy for the VAT in the Digital Age (VIDA) package, setting out key implementation milestones for member states.

Specifically, the package will introduce the following three measures:

Uniform real-time digital reporting for VAT purposes based on e-invoicing for cross-border transactions, to provide member states with the information necessary to challenge VAT fraud;
New VAT collection responsibilities for platform economy operators in the passenger transport and short-term accommodation rental sectors, when the underlying supplier does not charge VAT; and
An expansion of the existing 'VAT One Stop Shop' model for electronic commerce companies, to further reduce the need for VAT registration in multiple member states.

The new implementation strategy provides a roadmap with key action points and dates. These are listed as follows:

Since the entry into force of the VIDA package on April 14, 2025, member states are able to introduce mandatory e-invoicing rules under specific conditions. On this date, improvements were also made to the Import One-Stop-Shop (IOSS) framework;
From January 1, 2027, certain legislative clarifications for users of the One Stop Shop (OSS) and IOSS schemes will become effective. Further, certain single VAT registration (SVR) improvements will also apply from that date;
From July 1, 2028, platforms in short-term accommodation rental and passenger transport sectors must comply with new deemed supplier measures (unless the member state has opted to delay implementation to January 1, 2030). In addition, the main SVR reforms and mandatory reverse charge for non-identified suppliers will begin;
The Digital Reporting Requirements will affect cross-border B2B transactions from July 1, 2030, where e-invoicing will become mandatory and the default method for invoicing; and
By January 1, 2035, member states with a domestic digital real-time transaction reporting obligation must align their systems with the cross-border digital reporting system, marking the final phase of this comprehensive VIDA package.

The VIDA package is expected to generate substantial economic benefits, ranging from EUR172bn to EUR214bn over a decade, including a significant EUR51bn saving for businesses.