The EU’s VAT in the Digital Age (ViDA) package is a major modernisation of the EU VAT system. Adopted on 11 March 2025, it will progressively change how businesses report VAT, how VAT is collected in the platform economy, and how businesses manage VAT registrations across the EU. The reforms will be phased in between 2025 and 2030.

There are three pillars of ViDA:

1. Digital Reporting & e-Invoicing
ViDA will move VAT reporting towards digital, near real-time reporting based on e-invoicing. From 1 July 2030, mandatory e-invoicing and new EU Digital Reporting Requirements will apply to cross-border B2B transactions, giving tax authorities faster access to transaction information and helping tackle VAT fraud.

2. VAT & the Platform Economy
New rules will change how VAT is handled by certain digital platforms. In particular, platforms facilitating short-term accommodation rental and passenger transport by road will, in certain circumstances, become responsible for collecting and paying VAT where the underlying supplier does not charge VAT.

3. Single VAT Registration
ViDA will simplify and broaden the application of the domestic reverse charge mechanism, allowing Member States to apply it more widely in certain circumstances, and reducing the need for non-established businesses to register for VAT locally. ViDA will also expand the use of the One Stop Shop (OSS), allowing businesses to meet more of their EU VAT obligations in their own country, rather than registering for VAT separately in multiple Member States. The changes also include improvements to existing OSS/IOSS processes and a new mechanism for transfers of own goods. Overall, this pillar is designed to reduce the need for multiple VAT registrations and make cross-border EU VAT compliance simpler.

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