- The European Commission introduced the ViDA initiative in December 2022 to update the current VAT system.
- The initiative aims to address the VAT gap, which resulted in a loss of 61 billion Euros in VAT revenues for EU member states in 2021.
- ViDA will impact online businesses and introduce new regulations for compliance.
- The VAT gap is the difference between expected and collected VAT revenue, and it is attributed to various factors such as fraud, corporate bankruptcy, and legal tax optimization.
- ViDA will adapt the existing VAT system to be applicable to online businesses, enabling tax authorities to efficiently collect VAT from online sales to EU customers.
Source Transalis
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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