Briefing document & Podcast: ViDA’s Single EU VAT Registration

Background: Why a Single VAT Registration?

• VAT compliance hurdles in a single market. VAT is a cornerstone tax in every EU country, raising over €1 trillion annually, but it notoriously complicates cross-border trade. Under the traditional system, when a company sells goods or services in an EU country where it isn’t established, it often must register for VAT locally in that country. This means obtaining a VAT ID, filing local VAT returns, and adhering to each jurisdiction’s invoicing, reporting and payment rules. For even a modestly sized business, maintaining multiple VAT registrations can be cumbersome and costly, effectively acting as a trade barrier. A 2022 European Commission survey found that 90% of respondents flagged multi-country VAT registration as a persistent problem for doing business across the single market. Small firms are especially strained: the European Commission estimates one-time costs of around €1,200 to register in a single Member State, plus €2,400–€8,000 in annual compliance costs per country thereafter. These burdens can discourage expansion and even prompt companies to reorganize their supply chains just to avoid foreign VAT obligations, undermining the ideals of the EU Single Market. Moreover, tax authorities themselves must expend resources processing foreign registration applications and policing compliance, instead of focusing on fraud or taxpayer support. [europarl.europa.eu], [europarl.europa.eu] [europarl.europa.eu]
• The evolving One-Stop Shop (OSS). The EU has long recognized this issue and gradually introduced the One-Stop Shop (OSS) system as a remedy. Starting with a limited “mini OSS” for digital services in 2003 and expanding significantly in July 2021 (the e-commerce VAT package), the OSS allows businesses to declare and pay VAT for multiple countries through a single home-country portal. For example, an online seller can report all its EU-wide B2C sales in one quarterly OSS return, avoiding separate VAT filings in each consumer’s country. OSS has been a major simplification success for cross-border e-commerce, but its scope has limits (covering mainly B2C distance sales of goods and certain services). Businesses still need separate VAT registrations for many situations – like holding stock in multiple countries or doing local (non-distance) sales abroad. By 2024, it was clear further expansion of OSS (and related measures) was needed to truly enable a “single VAT registration” for the single market. This push is also tied to combating the EU’s sizable VAT gap (estimated at €93 billion lost revenue each year, partly due to cross-border fraud) by making compliance easier and tax evasion harder. [eurocommerce.eu], [europarl.europa.eu] [zampapartners.com]
• A pillar of the ViDA reform. In this context, the European Commission unveiled the VAT in the Digital Age (ViDA) proposals on 8 December 2022. ViDA is a broad package with three pillars: (1) Digital Reporting and e-Invoicing, (2) VAT rules for the Platform Economy, and (3) Single VAT Registration. All 27 Member States needed to unanimously approve these changes. After lengthy negotiations – including debates over platform VAT rules – EU finance ministers reached political agreement in November 2024, clearing the way for formal adoption. The Single VAT Registration (SVR) pillar emerged largely intact through this process, with the clear aim of ending the era of one company needing dozens of VAT numbers across Europe. It zeroes in on limiting situations that force businesses to register in multiple countries, by extending OSS to more transactions and by shifting certain tax burdens to buyers or new special regimes. In March 2025, the EU Council formally adopted ViDA, heralded as a “major milestone” toward a modern, fraud-resistant and business-friendly VAT system. [link.springer.com], [link.springer.com] [zampapartners.com] [meijburg.com], [rtcsuite.com] [ec.europa.eu]

Objectives of the Single VAT Registration Reform

• Adapt VAT to the digital economy’s reality. Modernize the VAT system so it matches the way businesses operate today – digitally and across borders – rather than forcing businesses into 20th-century compliance models. This includes leveraging digital tools (like e-portals and real-time data) to simplify tax administration. [link.springer.com]
• Reduce the need for multiple VAT registrations. Directly address the pain point of companies having to maintain VAT IDs in many Member States. By broadening the OSS single return mechanism and other simplifications, the new rules aim to minimize cases where a company must register abroad, without undermining tax collection. [link.springer.com]
• Build on previous e-commerce reforms. The OSS and related measures introduced in July 2021 were a big step forward. The Single VAT Registration reforms expand these successes to cover more types of transactions, effectively completing the unfinished business of the e-commerce VAT package and closing loopholes that still require multiple registrations. [link.springer.com]
• Level the playing field & boost the Single Market. By easing VAT compliance for cross-border trade, the reform seeks to encourage more businesses to sell across EU markets. This helps level the playing field between those engaged in cross-border commerce and those sticking to their domestic market (often to avoid VAT hassle). It also aligns with the EU’s broader goal of a truly integrated single market where tax formalities do not deter expansion. [eurocommerce.eu]
• Maintain revenue and combat fraud. Importantly, simplification goes hand-in-hand with safeguards. The reforms are designed to simplify compliance while still ensuring VAT due in each country gets collected. By encouraging use of OSS and a harmonized reverse-charge mechanism, tax authorities can actually get better visibility on transactions (especially once digital reporting kicks in by 2030). Reducing “VAT bureaucracy” should not create new loopholes; rather, it aims to shrink the €40–60 billion annual fraud linked to intra-EU transactions by bringing more transactions into a transparent, cooperative system. [zampapartners.com]

Key Measures: How Single VAT Registration Works

1. Extension of the One Stop Shop (OSS) to More Supplies

• Domestic B2C sales by foreign suppliers: If a company based in Member State A sells goods to consumers within Member State B (where it has no establishment), it can declare those sales via OSS. Previously, such local supplies to consumers required VAT registration in Member State B, but now they fall under OSS as long as the supplier isn’t established there. This covers scenarios like a foreign retailer delivering from a warehouse in the customer’s country or doing a local trade fair – they can settle the VAT centrally. (Notably, OSS already covered distance sales where goods ship from one country to another; the new rule extends to cases without cross-border transport, i.e. goods supplied and delivered within the same country by an out-of-state seller.) [link.springer.com]
• Goods with installation or assembly: Sales of goods that include an installation in the customer’s country (e.g. machinery assembled on-site) will be OSS-eligible. Today, a German firm installing equipment in France would often have to VAT-register in France; under the reform, that French VAT can be reported via the OSS single return. [zampapartners.com] [bdo.global]
• Passenger transport, catering, etc., on board vessels: Supplies made on ships, aircraft or trains during intra-EU trips can go into OSS returns as well. These are niche cases (like duty-free sales or meals on a cross-border ferry) where determining exact place of supply was complex; OSS will simplify that reporting. [link.springer.com]
• Supplies of electricity, gas, heating, cooling to consumers: B2C energy supplies across borders will join OSS. In fact, from 1 January 2027, sales of electricity, natural gas, and district heating/cooling to consumers in another Member State will be treated as “distance sales of goods” so they can be reported in OSS. This change is particularly relevant for utilities and emerging sectors like electric vehicle charging networks operating internationally. It allows energy providers to serve customers in multiple countries via one tax registration. (The 2027 date for energy is earlier than other measures, effectively giving an OSS head-start for the energy sector.) [zampapartners.com], [bdo.global]
• Continued e-commerce OSS scope: The existing OSS already covers cross-border B2C services and distance sales of goods (where goods are shipped from one country to a consumer in another). Those remain covered. The new rules essentially ensure almost all B2C goods transactions involving a foreign supplier can be funneled into OSS – whether or not the goods physically cross a border. [link.springer.com]

2. Mandatory EU-Wide Reverse Charge for B2B Transactions

• The reverse charge will appear in the European sales listings (EC Sales List). Suppliers using this in lieu of registration must include such B2B sales in their OSS or separate listings so tax authorities can track cross-border flows. And an invoice for the transaction is still required (by the 15th of the following month) so there’s documentation. [link.springer.com]
• Member States retain some flexibility: if the customer is not VAT-registered (e.g. a small business below threshold) or if the foreign supplier is already registered locally, countries can decide whether reverse charge applies or not. Essentially, the new rule covers the common scenario (foreign unregistered seller to identified buyer) uniformly, but leaves edge cases (like voluntary registrations or unregistered buyers) to national choice. Also, importantly, the reverse charge won’t apply to supplies under the second-hand margin scheme (used for used goods, art, collectibles) so that dealers under those rules don’t have to reveal their margin to customers. [kmlz.de] [link.springer.com]
• The effect is that for most B2B sales, a foreign supplier can avoid local VAT registration as long as it sells to taxable businesses who have a VAT ID. The compliance burden shifts to the domestic buyer, which is usually simpler since that buyer likely is filing VAT returns anyway. This measure complements the OSS expansion (which primarily handles B2C) by covering B2B scenarios where today foreign companies often have to register. It’s a significant simplification for cross-border B2B trade in goods or services. However, companies will need to manage this carefully – e.g. ensuring their customers’ VAT numbers are valid and that they do not charge VAT on these invoices (incorrectly charging VAT could cause confusion or require a registration to remit it).

3. New “Transfer of Own Goods” VAT Scheme (Be2Me OSS)

• Participation is optional but if chosen, the business must use it for all own-goods transfers EU-wide and will be assigned a special OSS identification (usually the same VAT number as their OSS for sales). Both EU-established and non-EU businesses can use it, as long as they have an OSS registration in an EU state. [link.springer.com], [link.springer.com]
• Monthly returns: The business will file a monthly VAT return in its OSS home state detailing all goods dispatched and received under the scheme (with the values, origin and destination countries). Any changes or adjustments can be made in subsequent returns up to 3 years later. [link.springer.com]
• Record-keeping: Special records of these transfers must be kept, though they do not have to be listed on the EC Sales List (since the OSS return covers it). [link.springer.com]
• Limitations: The scheme cannot be used if the goods being moved aren’t entitled to full VAT deduction in the destination country. This is to prevent abuse (e.g. moving goods that relate to exempt activities). Also, if a business misuses or persistently fails to comply with the scheme’s rules, it can be excluded from using it. If excluded, the company would revert to needing normal registrations for transfers. [link.springer.com]
• End of “call-off stock” simplification: The EU previously had a limited simplification for a specific scenario called call-off stock (where a supplier parks goods at a customer’s location in another country and the customer “calls off” stock as needed). That arrangement will be phased out by mid-2029, since the new OSS transfer scheme covers a broader range of movements in a more flexible way. Goods can still be placed under the old call-off system until June 30, 2028, and any remaining under it can be sold through June 2029, but after that the legal basis for call-off stock is removed. [link.springer.com]
• Practical effect: A company using the new scheme can redistribute its goods around the EU without having to register in every single Member State where it stores inventory. For example, a Swedish e-commerce seller could maintain stock in warehouses in Germany, France, and Italy and move goods among those warehouses, all while only being VAT-registered in Sweden and using the OSS reports for those transfers. It won’t charge itself VAT on moving the stock, and will only charge VAT when the goods are sold to customers (which, if B2C, can be done via OSS; if B2B, via reverse charge or normal means as appropriate). This is a huge simplification for pan-European retail and distribution operations. It also gives tax authorities a clear view of stock movements via OSS data without the administrative overhead of dealing with multiple local VAT numbers for one company.

4. Other Technical Changes

• €10,000 small trader threshold clarification: Under current rules, very small cross-border B2C sellers (under €10k in annual sales) can treat sales as domestic (tax in home country) to avoid foreign VAT issues. The reform clarifies that this threshold only applies to goods shipped from the trader’s home country. Previously, if a trader had stock in multiple countries, the threshold calculation was ambiguous and could force unwarranted registration. Now, only sales originating in the home country count toward the €10k threshold, preventing scenarios where a seller with a secondary warehouse accidentally loses the threshold benefit. Moreover, if a business registers for OSS, it will be deemed to have opted out of the threshold entirely – meaning once you go OSS, you commit to taxing in the destination country even below €10k, which makes sense given you have the OSS facility to do so. [link.springer.com], [link.springer.com] [link.springer.com]
• Non-Union OSS expansion: The non-Union OSS (for non-EU companies selling services to EU consumers) will be opened up to all types of services, not just certain electronic services as before. This allows more non-EU suppliers to use a single EU registration (in one Member State) for all B2C services in the Union, again reducing need for multiple local registrations. [link.springer.com]
• Sunset of redundant rules: As new schemes come in, some old provisions become redundant. We already noted the call-off stock simplification ending in 2029. Similarly, certain complex place-of-supply rules that were in the initial proposal (like changes for margin scheme goods, or special cases for works of art) were dropped from the final adopted text to avoid over-complication. These deletions reflected feedback from stakeholders that those changes might create as many new obligations as they removed. Thus, the focus remains on the core simplifications above. [meijburg.com], [kmlz.de]

Expected Impact on Businesses and the Single Market

• Easier cross-border trade and lower costs. The Single VAT Registration reforms are expected to have a transformative impact on VAT compliance costs and thus on the attractiveness of cross-border commerce in the EU. By some estimates, the overall ViDA package will yield €51 billion in compliance cost savings for businesses over ten years, largely by eliminating redundant filing requirements and registrations. Much of that benefit comes from the SVR pillar. Businesses that embrace the OSS expansion could see dramatic reductions in paperwork – filing one consolidated OSS return instead of up to 27 separate national VAT returns each period. The cost of maintaining an extra VAT registration (often thousands of euros per year, as noted earlier) can be saved outright in countries where it’s no longer needed. This is particularly beneficial for SMEs and start-ups, who will find it easier to scale their sales across the EU without encountering a wall of tax bureaucracy when they make that first sale into a new Member State. In turn, consumers may enjoy more choices and competition as more firms offer pan-European sales. Critics have long pointed out that despite the “Single Market,” many smaller companies avoided selling abroad due to VAT complexity – these reforms squarely address that barrier. [taxation-c….europa.eu] [eurocommerce.eu], [eurocommerce.eu]
• One registration, one portal. In practical terms, a firm using the new system might register for VAT only in its home country (or a single chosen Member State, if it’s non-EU) and through that one tax authority it can: report all its B2C sales EU-wide (via OSS), report any stock transfers across borders (via the new OSS module), and avoid charging VAT on B2B sales by leveraging reverse charge. The company’s finance department deals with just one set of tax rules and one online portal interface, rather than juggling many. Over time, as the digital reporting (e-invoicing) pillar of ViDA comes into force (by 2030), much of the required data will flow automatically to authorities, further easing compliance efforts. The streamlining and centralization of VAT obligations should greatly improve efficiency.
• Competitive neutrality and growth. Making VAT simpler also has broader economic benefits. It helps level the playing field between large multinationals (which had resources to manage multi-country VAT or to base subsidiaries in each country) and smaller firms. Now a small business can realistically serve customers EU-wide without prohibitively complex VAT logistics, enhancing competition. It also levels the field between domestic and foreign EU sellers – previously a local business might feel at a disadvantage if foreign competitors weren’t bothering to register and maybe escaping VAT; with OSS and new rules, everyone is either properly accounting for VAT (one way or another) or can be more easily caught if they don’t. The European Commission projected that the ViDA reforms as a whole will generate €172–214 billion in additional economic benefits over the coming decade, via efficiency gains and reduced fraud, reflecting increased cross-border activity and fairer tax collection. By removing friction, the EU aims to unlock more of the single market’s potential for growth. [taxation-c….europa.eu]
• Impact on VAT revenues and fraud. Although the main impetus for Single VAT Registration is simplifying life for compliant businesses, an important side effect is improved VAT compliance and enforcement. When businesses use the OSS and reverse-charge mechanisms, tax authorities get more complete and centralized information on transactions (e.g. OSS returns, recapitulative statements) which can be cross-checked across borders. The real-time reporting coming in a few years (under the digital reporting pillar) will strongly complement this: even if a company isn’t registered in Country X, Country X’s tax authority will still see VAT relevant to it (either through the OSS clearinghouse or via the buyer’s reverse charge reporting). This closes loopholes that fraudsters exploited, like using the complexity of multiple registrations to slip through cracks. The mandatory reverse charge for foreign B2B sales, for instance, tackles a common carousel fraud technique by cutting off the scenario of fraudulent claims by missing traders. All in all, the reforms should help shrink the VAT gap – the Commission has explicitly tied ViDA to combating the estimated €40–60 billion lost to intra-EU fraud annually. More robust cross-border data sharing and fewer “forgotten” VAT registrations mean stronger fraud prevention, which in turn protects Member States’ revenues while honest businesses face less unfair competition from tax evaders. [zampapartners.com]
• Caveats – not quite “one VAT number for everything.” It’s important to note that Single VAT Registration, while a big leap forward, is not a total panacea. Tax experts point out that certain scenarios will still force companies to maintain foreign VAT registrations or at least make careful choices. For instance, if a company engages in intra-Community B2B sales of goods (dispatching goods from one country to a VAT-registered buyer in another), the new rules don’t eliminate the need to be registered in the origin country of that shipment (because you must charge VAT or zero-rate properly at origin). Also, if a company has a fixed establishment or branch in another country, or makes local sales to unregistered customers there, those still generally require a local VAT number. In other words, the reforms greatly reduce additional VAT registrations, but they don’t magically allow one single VAT number to cover absolutely all situations. Companies whose activities fall outside the simplified scenarios (e.g. complex supply chains, certain B2B2C models, or cases where they want to reclaim local input VAT quickly rather than via refunds) may still find value in keeping some foreign VAT registrations. The expectation, however, is that the vast majority of typical cross-border transactions will be covered by the new simplifications, and only more advanced or niche operations would need multiple registrations going forward. Businesses will need to conduct case-by-case assessments of their supply chains to identify any remaining registration needs under the new regime. [kmlz.de], [kmlz.de] [meijburg.com]

Stakeholder Reactions and Debates

• Broad support from businesses and industry. The Single VAT Registration initiative has been widely welcomed by the business community, particularly those in retail, e-commerce, and other sectors that routinely sell across EU borders. Industry groups like EuroCommerce (representing retail and wholesale in Europe) and Ecommerce Europe have been strong advocates for a single EU VAT ID system since 2021. They hailed the adoption of the ViDA package in late 2024 as “a great step toward delivering a simplified and modernised VAT system in the EU”, specifically praising the SVR pillar as “pivotal” to reducing costly and time-consuming multi-country registrations. In a joint statement, these groups noted that even 30 years after the Single Market’s launch, VAT obligations remained among the highest barriers to cross-border trade – so they see this reform as long overdue to “adapt VAT to the needs of the 21st century”. Businesses that collect and pay a lot of VAT, such as large retailers, have a strong interest in any measure that removes obstacles and streamlines compliance. Many companies and trade associations provided feedback during the proposal stage, overwhelmingly in favor of the direction of these changes. The general sentiment is that simpler, unified VAT rules will make it easier for companies to expand sales across the EU, thus benefiting the economy while still ensuring the tax is paid. [eurocommerce.eu]
• Praise for OSS and IOSS success stories. Stakeholders frequently cite the One-Stop Shop (OSS) and Import OSS introduced in 2021 as “a success story and a milestone” in simplifying VAT. They view the Single VAT Registration plan as building on that success. As Luca Cassetti, Secretary-General of Ecommerce Europe, remarked, the existing OSS “greatly reduced administrative procedures” for online sellers, but businesses with multiple warehouses still needed to register in each country of storage, which is “costly and burdensome, especially for SMEs.” He noted that “introducing a Single VAT Registration in the EU by extending the existing OSS” would remedy this and help businesses thrive in the single market. Such testimonials underscore that industry sees OSS expansion as the right path, and they are eager to use these new tools when they become available. [eurocommerce.eu]
• Calls for faster implementation. One notable critique from the business side is that the timeline could have been more ambitious. The full single VAT registration reforms only take effect in 2027–2028, which some consider a long wait. EuroCommerce pointed out that since Member States have already begun work on implementation, an earlier go-live might have been feasible. They “would have targeted a more ambitious date” than July 2028, but nonetheless are satisfied that the reform is coming. This reflects a bit of tension: businesses want relief as soon as possible, whereas governments needed time to adjust systems and ensure consensus. Ultimately, the July 2028 date was a compromise all Member States could agree on, but the private sector will be champing at the bit to see it in action. Companies are advised to use the lead time to prepare (update their ERP systems, train staff, possibly register for OSS early, etc.) so they can hit the ground running when the new schemes launch. [eurocommerce.eu]
• Member State perspectives and compromises. For EU governments, the Single VAT Registration pillar was generally less controversial than other parts of ViDA (like the platform economy rules). All countries stand to gain from easier compliance and reduced fraud, especially those with many SMEs or those losing revenue to fraud today. However, there were still detailed technical debates in the Council working groups. Some Member States were cautious about certain provisions – for example, an initial proposal to change how margin scheme (second-hand goods) sales are taxed across borders was withdrawn in the final deal after concerns from countries that it would burden that sector. Likewise, ensuring the reverse charge extension did not inadvertently affect small domestic situations required careful crafting. The unanimous approval on November 5, 2024 came after tweaks like these to address each state’s concerns. During negotiations, Estonia notably hesitated (though about the platform pillar), and others wanted assurances that tax authority controls would remain robust even with a single registration. In the end, finance ministers agreed that the package strikes the right balance. Many national tax officials welcomed the simplification because it can free up administrative resources (fewer foreign registrations to process and chase) and because they anticipate better VAT collection through improved data sharing. Still, some officials also caution that implementation will be complex – tax IT systems need upgrades, and coordination between Member States’ portals (for OSS) must be seamless for the system to work smoothly. [meijburg.com] [rtcsuite.com], [rtcsuite.com]
• Tax professional and expert analysis. VAT experts and advisors have analyzed the Single VAT Registration reforms in detail, generally praising the intent but highlighting some practical challenges. Big Four firms and tax consultancies released alerts noting that these changes are “very significant” and advising businesses to develop implementation roadmaps. The consensus among professionals is that most businesses will benefit by avoiding multiple registrations, but they must carefully manage the transition and ongoing compliance. For example, BDO’s indirect tax team commented that the OSS and reverse charge extensions will be “welcomed by businesses” to avoid extra VAT registrations and costs, but pointed out that transactions under the new reverse charge will still be subject to the upcoming digital reporting requirements (from 1 July 2030), meaning companies should be ready for granular transaction reporting. They also note it’s “unfortunate” that even under single registration, transfers of own goods still require filing monthly declarations (albeit via OSS) – it’s a new compliance step, though far easier than full foreign registration. [rtcsuite.com] [bdo.global]
• Some VAT lawyers underscore that the “single” in Single VAT Registration comes with nuances. The German VAT specialists at KMLZ, for instance, welcomed the idea in principle but described the outcome as a “negotiated compromise” that still leaves complexity. They emphasize that companies whose operations go beyond the simplified scenarios will still face multi-country obligations. In their words, “only those entrepreneurs who exclusively carry out transactions covered by the simplifications can be satisfied… For everyone else, the necessity remains to register for VAT in other EU countries if needed. Thus, the reform does not live up to its name.”. KMLZ also warns of risks if businesses misapply the new rules – for example, failing to submit an OSS return or missing a transaction that should be in OSS could lead to retroactive local registration requirements and penalties. They advise businesses to thoroughly map their transactions against the new framework and not assume they can instantly cancel all foreign VAT numbers. Additionally, because some discretion remains at national level (e.g. reverse charge in edge cases, how “fixed establishments” are interpreted, etc.), there may still be variation in how rules apply country to country, at least initially. [kmlz.de]
• In sum, tax professionals are positive but cautious: they agree the reform is a big step forward in simplifying EU VAT, yet they urge continued vigilance. Businesses will need to adapt their accounting systems, possibly update invoicing to note reverse charges, and ensure timely OSS filings. No one wants to be the company that mistakenly operates under a single VAT ID when in fact a certain activity still required a local registration. The mantra is “prepare, don’t procrastinate” – use this lead time to understand the new rules in detail.

Implementation Timeline and Challenges Ahead

• December 8, 2022: Proposal Launched

  The European Commission unveils the ViDA legislative package, including the Single VAT Registration pillar, aiming to modernize VAT for the digital age.

• November 5, 2024: Political Agreement

  After extensive negotiations, EU finance ministers reach unanimous agreement on ViDA. Some details and timelines are adjusted to address concerns, paving the way for formal adoption.

• March 11, 2025: ViDA Formally Adopted

  The Council of the EU officially adopts the VAT in the Digital Age package. Member States begin the transposition and implementation phase for the new rules.

• January 1, 2027: First SVR Measures Begin

  The One-Stop Shop (OSS) is extended to cover B2C supplies of electricity, natural gas, and heat/cooling energy supplied across borders. Energy providers can start using OSS instead of foreign VAT registrations.

• July 1, 2028: Single VAT Registration Goes Live

  The core SVR reforms take effect. OSS is expanded to nearly all B2C goods supplies (including goods with installation and domestic supplies by foreign sellers) and to intra-EU transfers of own goods, via a new OSS module. The mandatory EU-wide reverse charge for B2B sales by non-established suppliers also becomes effective. From this date, businesses can truly operate under a single VAT registration for most cross-border activities.

• June 30, 2029: Transition of Call-Off Stock Ends

  The old call-off stock simplification is fully phased out. Any goods still under call-off arrangements must have their ownership transferred to customers by this date, as the new OSS transfer scheme fully replaces it.

• July 1, 2030: Digital Reporting Integration

  Though part of ViDA’s e-invoicing pillar, this date is significant for SVR: cross-border transactions (including those under OSS or reverse charge) will be subject to near-real-time digital reporting. This enhances tax authorities’ oversight of the single VAT system.

• Technical and IT implementation: Perhaps the biggest challenge is technical. The OSS system, which is essentially a web portal and a behind-the-scenes clearing house among tax administrations, will need significant upgrades to handle the expanded scope. New functionalities (like the own-goods transfer returns) must be built securely. Member States’ systems need to be interoperable so that, for example, if a French business declares a sale to Spain in OSS, the Spanish authorities reliably receive that info and payment. Past experience with OSS (and its predecessor, the Mini One Stop Shop) was generally good, but scaling it up adds complexity. There’s also the integration with real-time reporting by 2030 to consider – ensuring that OSS filings and e-invoice data can be cross-matched will be crucial for the system’s integrity.
• Business awareness and education: Not all companies are aware of these upcoming changes. Large multinationals likely are, but many SMEs might not yet grasp that, come 2028, they could simplify their VAT setup. A concerted effort is needed to educate businesses about the new options and compliance obligations. Tax authorities and professional advisors will play a role in disseminating information in 2026–2027. The success of “Single VAT Registration” depends on businesses actually using the OSS and schemes properly. If uptake is slow (due to ignorance or mistrust), the full benefits won’t materialize. Thus, a challenge is getting the word out and possibly training businesses on using the OSS portal, etc.
• Consistency and remaining differences: Despite harmonization, some nuances in national implementation could persist. For example, while the reverse charge is mandated for foreign-unregistered suppliers, how countries implement optional cases (like if the customer isn’t VAT-registered) may differ. Also, definitions like what counts as a “fixed establishment” or whether a particular transaction type fits OSS might still vary in interpretation. The Commission’s strategy and ongoing VAT Committee discussions will aim to iron these out, but companies dealing in multiple countries will need to stay alert to any local specificities. Over time, one hopes for maximum uniformity, but 2028 might see a few hiccups of inconsistent application that need resolution. [kmlz.de]
• Transitional issues: There will be an adjustment period. Companies will have to transition from old processes to new ones around mid-2028. For instance, a firm with call-off stock arrangements will need to migrate those to an OSS reporting of own goods by mid-2028, and coordinate with customers accordingly. Another example: a foreign business currently filing local VAT in 10 countries might deregister from many of them after mid-2028 – but they must ensure all past obligations are settled and final returns filed. Tax authorities will need clear protocols for deregistrations en masse as businesses shift to OSS. The period around mid-2028 could be operationally busy as both businesses and tax offices adjust.
• Monitoring and compliance enforcement: Simplification can sometimes invite new kinds of non-compliance (hopefully inadvertently rather than fraud). Tax authorities will need to monitor the OSS and new schemes carefully to ensure, for example, that if a company is supposed to use OSS it does so properly, or that those using the transfer scheme aren’t misusing it. The EU’s administrative cooperation will be vital – and with ViDA, tools for cooperation are also being enhanced (the update to Regulation 904/2010 for data sharing). Businesses that fail to comply with the OSS rules risk expulsion from the schemes, which would be a major setback for them requiring local registrations again. So enforcement mechanisms (and possibly penalties for misuse) must be in place and communicated. [link.springer.com]

Conclusion