ViDA – VAT in the Digital Age

The EU Council has approved the ‘VAT in the Digital Age’ package. The aim is to modernise VAT procedures, reduce fraud and drive forward digitalisation.

Important measures:
Digital VAT reporting: a real-time reporting system with e-invoices for cross-border B2B transactions will be introduced from 2030.
Platform economy: Platforms for short-term rentals and driving services must charge VAT if providers do not.
One-stop shop: businesses can fulfil VAT obligations for B2C sales in an EU portal.
The package will strengthen the EU’s competitiveness and now goes back to Parliament for final approval.

International developments:
EU-Singapore Digital Trade Agreement: Promotes cross-border e-invoicing standards to increase efficiency in trade.
Negotiations: Talks with the Philippines, Thailand, South Korea and the USA to harmonise eInvoicing standards.
Other measures:
Events: The EU presented its progress on eInvoicing at international conferences.
Updates: Publication of new code lists and validation artefacts for eInvoices in October 2024.
Security: From 25 November, two-factor authentication will be mandatory for access to the EU helpdesk platform.
This package marks a decisive step in the digital transformation of the EU tax system.