In November 2024, the EU Member States reached agreement on the ViDA package. ViDA stands for VAT in the Digital Age.
ViDA
The ViDA package consists of the following three elements:
- digital real-time VAT reporting based on e-invoicing;
- new rules relating to the platform economy;
- Single VAT registration.
E-invoicing
The aim is to fully harmonise e-invoicing within the EU, so that it is carried out in the same way throughout the Union. This will be introduced in three phases:
- Phase 1: EU Member States may make e-invoicing compulsory for domestic transactions (from 2025);
- Phase 2: e-invoicing becomes mandatory for all B2B transactions, combined with near real-time digital reporting by both the supplier and the customer to the tax authority (1 July 2030);
- Phase 3: full harmonisation of e-invoicing and digital reporting requirements across the EU (1 January 2035).
At present, Italy, Poland and Spain already have e-invoicing and reporting requirements for domestic transactions. Belgium intends to introduce such requirements with effect from 1 January 2026 for local B2B transactions carried out by Belgian companies (and Belgian permanent establishments of foreign companies).
In the Netherlands, there are as yet no concrete plans in this area.
Platforms
From 1 July 2028, digital platforms operating in the short-term accommodation rental and/or road passenger transport sectors are to be deemed, for tax purposes, to be the providers of these services (subject to a number of exceptions). The platform will therefore be responsible for complying with the VAT obligations applicable to the services provided.
VAT registration
The single VAT registration scheme aims to reduce the number of VAT registrations required in different countries. The current One Stop Shop (OSS) can be used for distance sales within the EU and certain B2C services. The intention is to introduce a new OSS that can be applied to a much wider range of transactions.