EU’s ViDA in Motion: How EU Member States Are Preparing for implementing Digital Reporting Requirements (DRR)

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All you need to know about VAT in the Digital Age (ViDA) – VATupdate

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Introduction

Countries are preparing for the EU’s VAT in the Digital Age (ViDA) initiative through national implementation plans and phased strategies aligned with the EU’s roadmap. Key points include:

• The ViDA package was adopted in March 2025, effective from April 2025, allowing Member States to start mandating electronic invoicing (e-invoicing) domestically without prior approval from the EU. Full mandatory cross-border B2B e-invoicing is planned by July 1, 2030.
• Countries like the Netherlands have unveiled multi-phase national plans. The Dutch approach involves four phases: policy research and stakeholder consultation until 2028, legislative framework development by 2028, technical adaptations from 2028 to 2030, and full enforcement starting July 2030. This phased rollout helps especially SMEs adjust smoothly.
• Sweden is preparing with a focus on national e-invoicing mandates and digital VAT reporting strategies, actively engaging businesses and stakeholders to ensure readiness.
• The European Commission supports coordinated implementation through technical guidance, workshops, stakeholder dialogues, and common standards like EN16931 for e-invoices.
• Some countries are running or participating in ViDA pilots, such as those based on the Peppol standard, to test interoperable e-invoicing systems.
• Member States are urged to align their systems, including national real-time reporting systems, with the centralized EU framework by 2035, promoting harmonization and fraud reduction across the EU.
• The implementation plan also includes expanded VAT obligations for digital platforms and simplified VAT registration processes (the expanded One-Stop Shop) to improve compliance in the digital economy.

In summary, EU countries are preparing for ViDA through legislative updates, technical system development, stakeholder engagement, pilot testing, and coordinated alignment efforts with the European Commission’s phased rollout timetable aiming for full application in 2030-2035

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Ireland’s ViDA Roadmap: Phased Rollout of E-Invoicing & Real-Time VAT Reporting

• Phased Implementation Plan: Ireland’s Revenue announced a three-phase rollout for mandatory e-invoicing and real-time VAT reporting, starting November 2028 for large corporates and culminating in July 2030 for all cross-border EU B2B transactions.
• Alignment with EU ViDA: The implementation plan aligns with the EU’s VAT in the Digital Age (ViDA) package, adopted in March 2025, ensuring Ireland meets the July 2030 deadline for digital reporting and e-invoicing across the EU.
• Business Readiness and Compliance: All businesses must be ready to receive e-invoices by November 2028, while the phased approach aims to enhance operational efficiency, reduce manual processing, and combat VAT fraud through improved data integrity and reporting.

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Lithuania – Draft law to Implement ViDA: Key Amendments and Timeline

• The draft law amending the Lithuanian VAT Act aligns with the new EU VAT Directive for the Digital Age (Council Directive (EU) 2025/516) and introduces regulations for digital platforms and cross-border e-commerce, while abolishing outdated provisions.
• Key changes include the repeal of the call-off stock scheme by June 30, 2029, treating digital platforms as suppliers for non-EU sellers, and clarifying rules for distance sales and One-Stop Shop (OSS) schemes, along with confirming a €10,000 annual threshold for small businesses.
• The implementation timeline specifies that most amendments will take effect on January 1, 2027, with some provisions related to distance sales starting on July 1, 2028, and the call-off stock scheme being fully abolished by June 30, 2029, alongside regulations to be finalized by December 31, 2026.

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Netherlands Sets Out Four-Phase Plan for Implementing EU ViDA

• Release of Implementation Roadmap: The Dutch Ministry of Finance has unveiled a comprehensive roadmap for the EU’s “VAT in the Digital Age” (ViDA) initiative, detailing a four-phase approach to prepare the Netherlands for new cross-border B2B e-invoicing and digital reporting obligations set to begin on July 1, 2030.
• Four-Phase Approach: The implementation will unfold over four phases: Phase 1 involves policy research and stakeholder consultations until 2028; Phase 2 focuses on establishing the legislative framework by the end of 2028; Phase 3 encompasses technical development from 2028 to 2030 for businesses to adapt their systems; and Phase 4 marks the official enforcement of ViDA obligations starting July 1, 2030.
• Support for SMEs and Alignment with EU Standards: This staged transition aims to provide ample time for companies, particularly small and medium-sized enterprises (SMEs), to adjust to the new requirements while ensuring that national implementations are in line with EU standards for efficient near real-time VAT reporting.

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Portugal Adapts E-Invoicing System for VIDA 2030 Timeline

• VIDA alignment underway: Portugal is proactively adapting its financial systems to meet the EU’s VAT in the Digital Age (VIDA) requirements, targeting full readiness by 2030.
• Existing mandates form the foundation: Businesses already use certified invoicing software, issue B2G e-invoices, and generate SAF-T files — with full B2G compliance expected by 2026 and SAF-T submissions mandatory from January 2027.
• Future focus on cross-border B2B reporting: Upcoming changes will likely include real-time reporting for cross-border transactions, enhancing transparency and tax compliance across the EU.

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Slovakia

• Alignment with ViDA Package: The proposed amendments to the VAT law are designed to implement the EU Directive 2025/516 (ViDA package), which modernizes VAT rules to better fit digital economies and enhance compliance.
• Mandatory E-Invoicing and Reporting: Effective January 1, 2027, the law mandates e-invoicing and real-time reporting for domestic B2B transactions, reflecting ViDA’s emphasis on digital reporting requirements to streamline VAT processes.
• Extension to Cross-Border Transactions: The requirement for mandatory e-invoicing will extend to foreign VAT-registered taxable persons for EU cross-border transactions by July 1, 2030, in accordance with ViDA’s goals to facilitate smoother cross-border trade.

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Spain

• Draft Approval for VAT Law Update: The Council of Ministers has approved the initial draft to amend VAT Law 37/1992, aligning with the EU’s VAT in the Digital Age (ViDA) directive (EU 2025/516), which aims to modernize the VAT system for the digital economy.
• Key Features of the ViDA Directive: The updates focus on enhancing the fight against intra-Community fraud through standardized electronic invoicing, simplifying VAT registration to a single VAT ID for businesses across the EU, and expanding the responsibilities of digital platforms to include services like short-term accommodation and passenger transport.
• Implementation Timeline: The changes will be phased in starting January 1, 2027, with significant reforms set for July 1, 2028, and July 1, 2030, introducing technical updates such as expanded coverage for non-EU consumer services and new requirements for non-EU businesses regarding VAT refunds.

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Sweden Prepares for ViDA Directive with National E-Invoicing and Digital VAT Strategy Inquiry

• Call for National Inquiry: On July 3, 2025, Sweden’s Tax Delegation (NSD) formally requested the Ministry of Finance to initiate a public inquiry into the implementation of e-invoicing and digital reporting, highlighting the need for careful consideration of various design choices under the EU’s ViDA framework.
• Key Areas of Focus: The NSD’s submission emphasizes critical decisions that Sweden must make independently, including the reporting of domestic B2B transactions, inclusion of VAT-exempt transactions, establishment of technical standards for e-invoicing, and definition of penalties for non-compliance.
• Engagement with Businesses: Concurrently, the Swedish Tax Agency is conducting an online survey to gather business insights on e-invoicing, demonstrating a commitment to inclusivity and transparency as the country prepares for the upcoming digital VAT transformation.

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Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE

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