After two years of negotiations, on March 11, 2025, the Council of the European Union granted its final approval to the ViDA package of measures “VAT in the Digital Age”, marking a milestone in the modernization of the Value Added Tax (VAT) system in the EU. The reforms will be implemented progressively until January 2035.
What is ViDA (VAT in the Digital Age)?
Presented by the European Union on December 8, 2022, ViDA, or VAT in the Digital Age, is a package of measures to modernize and digitize the EU's Value Added Tax (VAT) system. This set of changes seeks to adapt the European tax system to the digital era, improving administrative efficiency and reducing tax fraud.
ViDA, approved on March 11, 2025, marks a step towards the total digitalization of the VAT system, facilitating tax collection and promoting greater transparency and harmonization within the European market.
Main reforms introduced by the ViDA package of measures:
1. Required electronic invoicing: one of the highlights of ViDA is the implementation of mandatory electronic invoicing for all B2B transactions within the EU. This measure seeks to standardize processes and reduce manual errors, while facilitating auditing and tax compliance.
2. Updated rules for the platform economy: As of January 1st 2030, platforms that provide services in the passenger transport and short-term accommodation sectors will be responsible for reporting VAT to the Treasury when their users do not, for example, in the case of small companies or individual suppliers.
3. Single VAT registration: electronic invoicing regimes will also be integrated into the system of OSS single window (VAT One Stop Shop), which will allow companies to carry out a single online registration for all your tax obligations in the EU (instead of having to register in each member state). This measure reduces the administrative burden for companies and makes it easier to declare intra-community VAT since it only has to be submitted once.
ViDA: implementation schedule:
• July 2028: entry into force of the single VAT registration.
• January 2030: application of the new rules for the platform economy.
• July 2030: implementation of electronic invoicing and digital reporting.
• 2035: adaptation of existing national digital reporting models to the EU standard. This is the case of Italy, France, Poland, Germany, Romania and Belgium, for example.
The impact of the ViDA project on companies
Not only in Europe, the adoption of electronic invoicing is already a reality in several countries around the world. In a world where the economy is based on global trade, these reforms are essential to simplify and digitize the VAT process, combating tax fraud and reducing the administrative burden for companies at the same time.
It is important that companies begin to prepare for these changes, adopting technological solutions that allow them to meet new obligations. At Brait we have implemented more than 250 electronic invoicing projects in more than 30 countries. Our connector for SAP, Invictia, already operates in in countries as diverse as Spain (Create and Grow Act), France, Poland, Malaysia, Colombia, Mexico, Portugal, Italy (SII), responding to the different demands and requirements of each country with regard to reporting to the treasury, declarations, and/or digital signature mandatory.
Contact us now and we inform you about the necessary changes in your company for full compliance with the law.
