Agreement on VAT in the Digital Age

Important Changes

The latest ViDA package has been significantly revised compared to the original proposals of December 2022. The three pillars of ViDA include:

1. VAT reporting obligations (DRR) and electronic invoicing
2. VAT treatment of the platform economy
3. The only VAT registration in the EU

Electronic Invoicing Changes

Electronic invoicing becomes the standard for issuing invoices and is no longer dependent on the consent of the invoice recipient.

Key points:

• E-invoices must comply with the European Standard (EN16931)
• Electronic invoices for cross-border transactions must be issued no later than 10 days after the taxable event
• The previous recapitulative statements will be replaced by DRR for cross-border supplies

Timeline

• Phase I: No derogation required for mandatory e-invoicing (from Directive entry)
• Phase II: Launch of DRR and new e-invoicing for EU transactions (July 2030)
• Phase III: Alignment of national systems (2035)

Result

The ViDA reform heralds a new era for VAT in the digital economy and leads to a significant need for adaptation of internal company processes.