ViDA Implementation Strategy: Preparing Industry for VAT Reform in the Digital Age

• The EU VAT gap remains significant, with €89 billion lost in 2022 despite improvements from digitisation and policy measures.
• Challenges persist due to VAT fraud, evasion, administrative inefficiencies, and the complexity of cross-border and online trade.
• The ViDA initiative aims to modernise VAT through real-time digital reporting, mandatory eInvoicing, and harmonised rules.
• ViDA focuses on three pillars: Digital Reporting Requirements, Platform Economy reforms, and Single VAT Registration to simplify compliance and reduce fraud.
• The European Commission estimates ViDA could generate €172–214 billion in net economic benefits over 10 years, including €51 billion in business savings.

Source: fintua.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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