- Introduction of ViDA: The European Commission has released the implementation plan for the “VAT in the Digital Age” (ViDA) initiative, which aims to modernize VAT management across the EU through real-time digital reporting and electronic invoicing for intra-EU B2B transactions.
- Key Dates and Rollout Phases: The plan outlines a phased implementation strategy starting with a pilot program on April 14, 2025, leading to significant changes on January 1, 2027, when electric vehicle charging operators can use the One-Stop Shop (OSS) for VAT, followed by major changes on July 1, 2028, and mandatory e-invoicing on July 1, 2030.
- Impact on Businesses: Companies engaged in cross-border trade will face the most significant changes, needing to adapt to new e-invoicing and reporting requirements. Online platforms will also be tasked with VAT collection responsibilities, enhancing compliance in the digital economy.
- Economic Benefits and Compliance Support: The Commission estimates that ViDA could generate up to €214 billion in net benefits over the next decade, including savings for businesses. Ongoing dialogue with the business community is promised to address concerns and improve the application of reforms.
- Future Guidance and Harmonization: While the core legislation has been released, further technical details will be clarified through implementing regulations. By January 1, 2035, existing national real-time reporting systems must align with the new EU-wide model, promoting harmonization across member states.
Source Forbes
See also
EU Publishes VAT Digital Age Implementation Strategy for Businesses and Member States – VATupdate
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
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