Commission welcomes general approach on VAT principles in the Digital Age
November 2024
After two years of negotiations, Estonia lifted its blocking veto and the ViDA-package (VAT in the Digital Age) was adopted by the European Council on 5 November 2024, which will result in significant changes to the EU VAT system starting from 2027.
The ViDA initiative aims to modernize the VAT system in the EU for the digital economy. The three main pillars of ViDA are:
1. Introduce Digital Reporting Requirements (DRR), modernise the process of invoicing and move to mandatory e-invoicing on intra-EU business-to-business (B2B) transactions (from 1st of July 2030);
2. Introduce a deemed-supplier rule for platforms that facilitate short-term accommodation rentals and passenger transport services by road (from 1st of July 2028 at the earliest);
3. Simplifications for businesses operating in multiple EU Member States by expanding the OSS, introducing a special scheme for transfers of own goods and applying a mandatory reverse charge mechanism (from 2027).
More information can be found: here and here
Author: Kätlin Klaos
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