With the "VAT in the Digital Age" (ViDA) initiative, the European Union has presented a comprehensive package of measures to modernize the VAT system and adapt it to the requirements of the digital age. On December 8, 2022, the EU Commission presented corresponding proposals, which were adopted by the EU Council on November 5, 2024, after intensive negotiations. actual consent took place on March 11, 2025.
Goals of the ViDA initiative
ViDA aims to modernise the existing VAT system, simplify tax obligations for companies and combat VAT fraud within the EU more effectively.
Core components of the ViDA initiative
- Single EU VAT registration
Companies operating cross-border within the EU will in future be relieved of the obligation to maintain multiple VAT registrations in different member states. By introducing a single EU VAT registration, companies can submit all required returns in their country of residence.
- Electronic invoicing and digital reporting obligations
A central element of the ViDA initiative is the introduction of a digital reporting system based on the mandatory use of electronic invoices (e-invoicing). Starting in 2028, companies will be required to submit structured electronic invoices to the tax authorities within four days of service provision. This system is intended to increase efficiency and reduce VAT fraud.
- Regulations for the platform economy
Platforms that provide services such as short-term rentals or passenger transport will be subject to greater responsibilities in the future. They will be responsible for collecting and paying VAT, especially if the service providers are small businesses or private individuals.
Implementation schedule
The ViDA measures will be implemented step by step:
- From 1 January 2027: Extension of the One-Stop-Shop procedure and introduction of EU VAT registration.
- From 1 July 2028: Mandatory electronic invoicing and introduction of digital reporting obligations.
- From 1 January 2030: Application of the new regulations for the platform economy.
Conclusion
The ViDA initiative marks a significant step toward digitizing and harmonizing the European VAT system. Companies should closely monitor the upcoming changes and take early action to adapt their internal processes and systems accordingly.
We at GOpus support you in implementing the ViDA initiative in your SAP system. With our experience in e-invoicing, digital reporting requirements, and tax automation, we ensure that your company is prepared for the new regulations early and smoothly. Contact us.
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