ViDA: the future of the European VAT system

ViDA (VAT in the Digital Age) marks a new phase for VAT in the European Union. With mandatory e-invoicing, real-time reporting and a single EU VAT registration, the EU aims to reduce VAT fraud and ease administrative burdens for businesses. In March 2025, the roadmap was confirmed: the new requirements will be introduced gradually between now and 2035. In this article, we explain what ViDA involves, the key deadlines and how its three pillars will affect your organisation.

What is ViDA?

The European Commission presented ViDA in December 2022. Following extensive negotiations among EU Member States within the Council of the European Union, a political agreement was reached on 5 November 2024. On 11 March 2025, all EU Member States approved the final text. Shortly afterwards, on 25 March 2025, the rules were officially published in the Official Journal of the EU.

Some elements of the timeline have been adjusted, but the core of ViDA remains unchanged. Member States must now take the necessary steps to implement these rules by the agreed dates.

The three pillars of ViDA

Pillar 1: mandatory e-invoicing and real-time reporting

Businesses will be required to issue invoices electronically and report them directly to the tax authorities. This real-time exchange of data makes the VAT chain more transparent and reduces the risk of fraud.

E-invoicing will become mandatory for intra-EU B2B transactions from 1 July 2030. The rollout will be gradual. From 1 January 2024, Member States have been allowed to mandate e-invoicing for domestic transactions. In some countries, such as Poland, Spain and Belgium, this is already in place. The goal is to achieve full harmonisation of e-invoicing across the EU by 1 January 2035.

Pillar 2: new rules for the platform economy

Platforms that facilitate short-term accommodation rentals (up to thirty nights per customer) or passenger transport by road will be treated as the supplier of those services. This includes large platforms such as Booking, Airbnb and Uber, as well as smaller providers. As a result, these platforms will be responsible for charging and remitting VAT.

This so-called ‘deemed supplier’ rule applies only if the actual service provider has not provided a valid VAT identification number in the relevant Member State or has not confirmed that they will account for VAT themselves. In practice, this primarily affects situations where the underlying supplier does not declare VAT.

Member States may choose not to apply this rule where the service provider uses the small business scheme. In the current Dutch implementation proposal, this exception is used for passenger transport by road.

The aim of these rules is to ensure that Member States collect VAT more effectively on services booked through platforms. The new requirements will apply from 1 July 2028, although Member States may postpone implementation until 1 January 2030.

Pillar 3: a single European VAT registration

The existing One Stop Shop (OSS) scheme will be expanded, allowing businesses to manage VAT obligations in multiple countries through a single VAT registration more often. This reduces the need for multiple registrations and lowers administrative burdens.

The extension covers, among other things, B2C supplies of electricity, gas, heating and cooling, installation supplies and domestic supplies in another Member State. The reverse charge mechanism will also be expanded, meaning that businesses no longer have to account for VAT or register locally for certain B2B supplies in other Member States.

The rules for transferring your own goods to another Member State will also change. Businesses will be able to report these movements via the OSS. These measures, along with the other elements of this pillar, will take effect on 1 July 2028.

The impact of ViDA on your VAT processes

ViDA aims to reduce VAT fraud by billions each year while lowering administrative burdens for businesses. By standardising invoices, introducing real-time reporting and expanding the OSS system, tax authorities gain faster and better insight into transactions.

For your organisation, this means fewer separate VAT registrations and less manual administration. At the same time, ViDA requires short-term adjustments. You will need to update IT systems, adapt processes and implement new ways of working. These changes involve additional costs, particularly due to system upgrades and implementation efforts. The shift to e-invoicing and digital reporting will have the greatest impact on day-to-day operations.

How we can support you

The ViDA rules are final, and the first implementation dates are approaching. Businesses will need to deal with mandatory e-invoicing, new platform rules and a single EU VAT registration. Although these requirements are not yet in force in the Netherlands, it is wise to start preparing now.

Our VAT specialists help you translate these changes into practical steps for your organisation. This ensures you avoid surprises and are ready when the rules come into effect.

Written by:

H.G.A. (Henk) van Assen LL.M senior manager vat and customs

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faq ViDa

What is ViDA?

ViDA stands for VAT in the Digital Age. It is a reform of the European VAT system, focused on e-invoicing, real-time reporting and a single VAT registration. The aim is to reduce fraud and lower administrative burdens.

When will ViDA come into effect?

ViDA will be introduced in phases from 2028 through to 2035. Some elements, such as the platform rules, have earlier start dates. Member States may defer certain obligations.

What does ViDA mean for your business?

You will need to comply with new reporting requirements and adjust your VAT processes. In return, you will likely need fewer VAT registrations. Preparing your IT systems will be especially important.

Will e-invoicing become mandatory?

Yes. Mandatory e-invoicing for intra-EU B2B transactions will apply from 1 July 2030. The objective is full harmonisation across the EU by 1 January 2035.