- ViDA Overview: The EU’s VAT in the Digital Age (ViDA) initiative aims to modernize VAT administration through three key components: introducing digital reporting requirements, extending VAT to the platform economy, and expanding the One-Stop Shop (OSS) VAT registration system. It seeks to reduce VAT fraud by an estimated €11 billion within the first decade while simplifying compliance for businesses.
- Impact and Compliance: All VAT-registered businesses in the EU, particularly SMEs engaged in cross-border trade, will need to adapt their accounting systems and processes to meet ViDA’s new digital standards. Noncompliance could lead to penalties and operational disruptions, emphasizing the importance of transitioning to e-invoicing to enhance efficiency and accuracy.
- Implementation Timeline: ViDA, introduced in December 2022 and approved in February 2025, will roll out in phases from April 2025 to January 2035. Key deadlines include mandatory e-invoicing for domestic B2B transactions by April 2025, expanded OSS registration by January 2027, and comprehensive digital reporting requirements by July 2030, aligning VAT processes with the digital economy.
Source Storecove
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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