The European Commission is moving ahead with the implementation of its VAT in the Digital Age reform package, known as ViDA, as part of a wider effort to modernise the European Union’s VAT system.
According to an announcement published on Friday by the Commission’s Directorate-General for Taxation and Customs Union, the programme is based on the implementation strategy published in September 2025 and is designed to support the rollout of the ViDA package under the current multiannual financial framework.
The reform, formally adopted in March 2025, will be introduced gradually through 2035.
The Commission says ViDA is intended to make the EU’s VAT system work better for businesses, strengthen its resilience against tax fraud and respond to the challenges created by the growth of the digital platform economy.
Key milestones are set for 2027, 2028, 2030 and 2035. From January 1, 2027, the One Stop Shop system will be expanded further to cover supplies to final consumers in the electric vehicle charging sector, while clarifications on the operation of the One Stop Shop and Import One Stop Shop systems will also take effect.
From July 1, 2028, new obligations will apply to digital platforms in the short-term accommodation rental and road passenger transport sectors under the deemed supplier mechanism. The gradual development of the Single VAT Registration system will also begin, alongside a strengthened reverse charge mechanism for suppliers not established in the relevant member state.
From July 1, 2030, cross-border business-to-business transactions will be subject to new digital reporting requirements based on mandatory electronic invoicing. Electronic invoicing will become the default form of invoicing in the EU.
The Commission says the new real-time digital reporting system will improve transparency and oversight of cross-border transactions, giving member states the data needed to tackle VAT fraud, including carousel fraud.
The transition to the new framework is expected to reduce tax fraud by up to €11 billion a year, while cutting administrative and compliance costs for EU businesses by more than €4.1 billion annually over the next decade.
The Commission also clarifies that although electronic invoicing will become the main rule, other forms of invoicing may still be used for transactions not covered by digital reporting requirements, where permitted by member states and in line with the European electronic invoicing standard.
Under the Single VAT Registration pillar, the Commission aims to reduce cases in which businesses need multiple VAT registrations in different member states. This will be done through the expansion of the One Stop Shop system and the simplification of compliance procedures.
The package also provides for mechanisms such as mandatory reverse charging in specific cross-border transactions, as well as changes to VAT rules for e-commerce.
The ViDA package forms part of a broader push to digitalise and harmonise tax systems across the EU, with the aim of making life easier for businesses and improving the effectiveness of tax authorities.
Full implementation is expected by 2035, when member states that already operate national digital reporting systems will be required to align them with the common European framework, completing the transition to an integrated system of digital tax administration.
Source: CNA
