ViDA is coming: prepare your VAT processes now

Why ViDA?

The digital economy continues to grow—and so do the VAT challenges that come with it: fragmented reporting rules, uneven compliance and increased fraud risks. ViDA is designed to modernise and harmonise VAT compliance across the EU. It does this through three key measures:

• Digital Reporting Requirements (DRR) and mandatory e-invoicing
• New rules for the platform economy
• Single VAT Registration (SVR)

E-invoicing and Digital Reporting Requirements

From 1 July 2030, structured e-invoicing will become mandatory for intra-EU B2B transactions. Member States may introduce e-invoicing and digital reporting for domestic transactions as well, provided the European standard (EN 16931) is used. Periodic reporting will increasingly make way for (near) real-time, transaction-based reporting, meaning invoice data must be submitted digitally at, or shortly after, issuance.

• E-invoices must comply with EN 16931 to ensure interoperability across systems and countries.
• Invoices must be issued within ten days after the taxable event.
• Suppliers must report invoice data immediately after issuance; customers must report within five days of receipt.
• Reporting is transaction-based (not aggregated).
• The current EC Sales Listing will be abolished.
• National systems must align with EU standards by 1 January 2035 at the latest.

Major VAT changes for digital platforms

ViDA also increases VAT responsibilities for platform operators. New rules are introduced for short-term accommodation and passenger transport, and fraud controls for the Import One Stop Shop (IOSS) are strengthened. Under certain conditions, platforms will increasingly be treated as a deemed supplier, meaning they may have to collect, remit and report VAT.

Single VAT Registration

ViDA moves towards a single VAT registration for businesses active in multiple EU countries, helping reduce administrative burden and supporting growth. The package also expands the One Stop Shop (OSS), enabling businesses to limit the number of VAT registrations needed across Member States.

What ViDA means for businesses

• Assess whether your invoicing, tax and ERP systems can create and exchange structured e-invoices.
• Map where you operate and which countries already require e-invoicing or digital reporting—some Member States may move faster than the EU timeline.
• Set up continuous compliance monitoring to safeguard data quality and meet reporting deadlines.
• Train employees on the new processes and systems.
• For platform businesses: prepare for increased VAT responsibilities.
• Use ViDA as a moment to modernise finance workflows and data governance.

Want to know what ViDA means for your business?

At aaff, we like to be meaningful, by sharing knowledge, providing insight and offering practical advice. ViDA brings major change, but also opportunities. Curious how this will affect your organisation, or how to prepare? Please contact our international specialists Anne Kin.