On March 11, 2025, the European Council approved the VIDA package, aimed at modernizing VAT rules for the digital age. This package consists of three main components: electronic invoicing and digital reporting, the platform economy, and the expansion of one-stop-shop regulations.
Key Topics
- E-Invoicing and Digital Reporting:
- Implementation is set for July 1, 2030.
- Businesses will be required to use electronic invoices that comply with EU standards.
- Cross-border transactions (B2B) must be reported digitally on a per-transaction basis.
- Platform Economy:
- Digital platforms will be treated as taxpayers for certain services.
- Legislation must be implemented by June 30, 2028, with a possible extension until January 1, 2030.
- Regulatory Burden and Support:
- Efforts will be made to balance new obligations with the administrative burden on businesses, particularly small enterprises.
- Implementation must be feasible, with input from stakeholders.
Implementation Process
The implementation process is divided into four phases:
- Policy research and preparation.
- Legislation.
- Technical development.
- Rollout.
Policy Choices
Key policy choices include:
- Whether to mandate e-invoicing for national B2B transactions.
- Selection of technical infrastructure for e-invoicing and reporting.
Execution Aspects for the Tax Authorities
Implementing VIDA should contribute to the future vision of the Tax Authorities, focusing on:
- Development of VAT systems.
- Receiving and exchanging reports within the EU.
- Enforcement and oversight.
Conclusion
The State Secretary will keep the House of Representatives informed about developments related to the VIDA package, with the next step being a policy research phase.
Source Ministry of Finance
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
