{"id":718429,"date":"2025-01-28T03:00:57","date_gmt":"2025-01-28T09:00:57","guid":{"rendered":"https:\/\/www.spscommerce.com\/?p=718429"},"modified":"2025-07-11T05:34:35","modified_gmt":"2025-07-11T10:34:35","slug":"latest-updates-on-vida-vat-in-the-digital-age","status":"publish","type":"post","link":"https:\/\/www.spscommerce.com\/eur\/blog\/latest-updates-on-vida-vat-in-the-digital-age\/","title":{"rendered":"Latest updates on ViDA, VAT in the Digital Age"},"content":{"rendered":"

Update from March 17, 2025<\/em><\/p>\n

The European Commission is determined to fight tax fraud and unify the tax reporting process across European countries, so it has come up with the ViDA (VAT in the Digital Age) proposal to support this will. This blog article is here to keep you updated on the latest developments and votes and is going to be updated on a regular basis.<\/p>\n

ECOFIN<\/h2>\n

It is useful to know that discussions around ViDA occurs during the ECOFIN Council, usually once a month, the latest has been held on January 21st<\/sup> 2025, now under the Polish Presidency.<\/p>\n

The main objective will be to \u201cmeet the challenge of the EU’s declining competitiveness\u201d. The Polish Presidency wants to achieve a stronger economy by streamlining the single market.<\/p>\n

As far as our ViDA subject is concerned, ECOFIN validated the three pillars of the proposal on November 5, 2024, under the Hungarian presidency. A compromise satisfactory to all 27 member states was reached after months of negotiation.<\/p>\n

On March 12, 2025, The European Commission has approved new measures to modernise the EU’s VAT system.This means that EU member states can introduce mandatory e-invoicing under certain conditions.<\/p>\n

On February 12, 2025, the European Parliament approved the draft Council directive amending Directive 2006\/112\/EC as regards VAT rules for the digital age. The draft requires final political approval from Council of the European Union. The report on the draft Council directive amending Directive 2006\/112\/EC as regards VAT rules for the digital age ia availble here<\/a>.<\/p>\n

The 3 Pillars of ViDA<\/h2>\n

As we\u2019ve developed an article on the most common questions about ViDA<\/a>, this section is going to focus on a more technical point of view with the specific rules that are discussed during the council.<\/p>\n

To summarize, ViDA is developed around 3 main pillars:<\/p>\n

Electronic Invoicing and Reporting (DRR)
\n<\/strong>As ViDA aims to fight tax fraud and reduce the VAT Gap<\/a>, the proposal implements the so-called DRR \u2013 Digital Reporting Requirements \u2013 to get a real-time view on invoices that are exchanged cross-border in the EU.This first pillar implies a common standard (EN16931) for the e-invoices that are going to be issued, with specific information that should appear within the invoice.<\/p>\n

Online Platforms
\n<\/strong>This part is targeting short-term accommodation rental and passenger transport through platforms (e.g. Uber or AirBnB).With the new rules, \u201cMember States should put at the disposal of the taxable persons the necessary means for such transmission\u201d. It will simplify the process for SMEs and individual service providers. Finally, it is promoted as \u201cfairer\u201d in regard to small companies that may have a heavy administrative burden related to their tax collection.<\/p>\n

Single VAT Registration
\n<\/strong>The One Stop Shop (OSS) will represent the decentralized model that is considered for ViDA. It will allow a Single VAT Registration number, simplifying administrative work for companies who will register only once to fulfill their VAT obligations all over Europe.<\/p>\n

What is changing<\/h2>\n