- Introduction of Key Reforms: On March 11, 2025, the Council of the European Union adopted the VAT in the Digital Age (ViDA) package, introducing essential updates to the EU VAT system to reduce administrative burdens and enhance compliance in response to evolving digital business models.
- Three Core Pillars: ViDA is structured around three main pillars: mandatory e-invoicing and digital reporting for cross-border transactions, new regulations for digital platforms acting as intermediaries, and simplifications through the extension of the One Stop Shop (OSS) for VAT registration, aimed at streamlining compliance for businesses.
- Implementation Timeline and Preparation: The reforms will be implemented progressively from 2028 to 2035, with businesses encouraged to assess their VAT compliance procedures and systems to adapt to the upcoming changes, ensuring they are prepared for the phased rollout of the new regulations.
Source TPA
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