- On 11 March 2025, the Council of the European Union adopted the ViDA reform package, which includes a directive, regulation, and implementing regulation, finalizing the legislative approval process after the European Parliament’s vote on 12 February 2025 and the ECOFIN agreement on 5 November 2024.
- The reforms, aimed at modernizing VAT rules for the digital economy, were officially published in the EU Official Journal on 25 March 2025 and will take effect on 14 April 2025. The directive will need to be transposed into national law, while the regulations are directly applicable.
- The European Commission plans to issue Working Papers for each pillar by summer 2025, incorporating member state feedback, to provide guidance for businesses and tax authorities on implementing the reforms effectively.
Source PwC
