VIDA at ECOFIN: Further Delays

VAT System Revisions: The European Union is reforming its VAT rules to address challenges posed by the digital economy and cross-border e-commerce, with a significant ECOFIN agreement reached on November 5 to simplify compliance, ensure fair taxation, and combat VAT fraud.
Platform Economy Reforms Delayed: The introduction of deemed supplier rules for short-term accommodation and ride-sharing platforms has been postponed to January 2030, with a voluntary phase starting in July 2028, due to concerns from member states.
Single VAT Registration Postponed: The implementation of the Single VAT Registration reform has been delayed to July 2028, allowing e-commerce businesses to centralize VAT registration and reduce compliance burdens in multiple EU Member States.
Digital Reporting and E-Invoicing Requirements: Mandatory Digital Reporting Requirements (DRR) for intra-community transactions will take effect by July 2030, requiring structured e-invoices based on the EU’s EN16931 standard to strengthen compliance and reduce the VAT gap.
E-Invoicing Harmonization Extended: The deadline for aligning domestic e-invoicing systems with ViDA standards has been pushed to January 2035, allowing member states more time to adapt while a new central database will enhance transparency and tracking of VAT-related transactions.

Source: SNI

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