On 8 December 2022, the European Commission (EC) published the VAT in the Digital Age proposal (ViDA). ViDA consists of a series of far-reaching VAT measures to modernize the EU’s VAT system in order to make it more compatible with today’s ways of doing business digitally. At the same time, the EC intends to make the VAT system more resilient to fraud by embracing and promoting digitalization.
In short, the EC proposes to (i) modernize VAT reporting obligations, (ii) address the challenges of the platform economy, and (iii) avoid the need for multiple VAT registrations in the EU. If adopted, these measures will have an impact on companies doing business in and with the EU. At the same time, ViDA provides opportunities for companies to reduce VAT compliance costs.
For ViDA to become effective, the proposal should reach unanimous consent from all 27 EU Member States. If adopted by all Member States, the changes proposed by ViDA will gradually become effective between 1 January 2024 and 1 January 2028.
Source Baker & McKenzie
See also
- ViDA Analyzed – Part 1: E-invoicing will be the general rule for the issuance of invoices – Legal basis
- ViDA Analyzed – Part 2: 2 days deadline for the issuance of invoices on intra-Community supplies
- ViDA Analyzed – Part 3: Elimination of the possibility to issue summary invoices
- ViDA Analyzed – Part 4: Content of invoice – More data elements added to allow automation of process reporting (Art. 226)
- ViDA Analyzed – Part 5: Call-Off Simplification (Art. 17a) introduced via the Quick Fixes will cease to exist
- ViDA Analyzed – Part 6: Digital reporting system for intra-Community transactions: Articles 262 to 271
- ViDA Analyzed – Part 7: Digital reporting system for supplies of goods and services for consideration carried out within the territory of one Member State: Articles 271a to 273
- ViDA Analyzed – Part 8: Platform economy: Deemed supplier regime for short-term accommodation rental and passenger transport
- ViDA Analyzed – Part 9: Single VAT Registration (SVR) and improvements to the existing e-commerce rules and the margin scheme
- ViDA Analyzed – Part 10: Member States should allow ”Domestic reverse-charge” (Art. 194)
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