VAT in the Digital Age (ViDA) Adopted: What It Means for Businesses

In short: The EU formally adopted the VAT in the Digital Age (ViDA) reform on March 11, 2025. ViDA brings real-time digital reporting and mandatory e-invoicing for intra-EU B2B sales, makes online platforms collect VAT in some sectors, and expands the One Stop Shop. The changes are phased in between 2025 and 2035.

Update (October 2026): ViDA is now being rolled out. The first, minor OSS and IOSS changes apply from 1 January 2027. In July 2026, the European Commission published revised explanatory notes and OSS guidelines. It also adopted Implementing Regulation (EU) 2026/1869, which sets rules for the new transfer of own goods scheme. The legal text also clarifies one date this article first simplified. Member states may apply the platform deemed supplier rule from 1 July 2028, but must apply it by 1 January 2030. The full rollout runs until 1 January 2035.

What is ViDA?

ViDA (VAT in the Digital Age) is the EU’s package of reforms that modernises VAT for the digital economy. It brings e-invoicing and digital reporting for cross-border B2B sales, VAT collection by certain platforms, and a single VAT registration across the EU. It consists of three legal acts, all adopted by the Council on 11 March 2025:

• Council Directive (EU) 2025/516: amends the VAT Directive (2006/112/EC). It contains the e-invoicing, digital reporting, platform and single VAT registration rules.
• Council Regulation (EU) 2025/517: amends Regulation (EU) No 904/2010 on administrative cooperation. It creates a central VAT information exchange system (central VIES) so tax authorities can share reported data.
• Council Implementing Regulation (EU) 2025/518: amends Implementing Regulation (EU) No 282/2011. It defines when a platform “facilitates” a supply and sets record-keeping rules. Most of it applies from 1 July 2028.

The European Union has officially adopted the VAT in the Digital Age (ViDA) reform. It starts a new era of tax compliance and reporting for businesses across the bloc. On March 11, 2025, the Council of the European Union formally approved the ViDA proposal. This set the stage for a phased rollout leading up to 2030.  For a closer look, see Spain Set to Implement Mandatory B2B E-Invoicing by July 2025.

The ViDA package is designed to modernize the VAT system. It will introduce real-time digital reporting, extend the One Stop Shop (OSS) scheme, and make online platforms take on more responsibility for VAT collection. The changes will be rolled out gradually, but businesses should start preparing now to avoid disruption.

What are the key changes under ViDA?

The ViDA reform focuses on three areas: digital reporting and e-invoicing, platform economy taxation, and OSS expansion. Read more in our guide: VAT and the Growth of the Digital Platform Economy.

• Digital reporting and e-invoicing The EU will move to a real-time digital reporting system for cross-border transactions. This replaces today’s summary reporting through the EC Sales List. The aim is to fight VAT fraud by letting tax authorities track transactions more effectively. ViDA also brings mandatory e-invoicing for intra-EU B2B transactions. This matches the digital plans of several member states that already have similar rules. The digital reporting requirements apply from July 1, 2030.
• New VAT rules for online platforms Online platforms that facilitate sales of goods and services will have to collect VAT on behalf of sellers in certain cases. This mirrors rules that already apply to e-commerce marketplaces under earlier EU VAT reforms. The change matters most for gig economy services, such as short-term accommodation and ride-hailing. There, platforms will be responsible for VAT compliance instead of individual providers. These platform economy rules apply from July 1, 2028.
• Expansion of the One Stop Shop (OSS) The OSS scheme simplifies VAT registration for businesses selling across multiple EU countries. ViDA expands it to cover a wider range of B2C services and certain B2B transactions. This should cut admin for businesses operating internationally, removing the need for multiple VAT registrations across the EU. The expanded OSS rules will be introduced gradually, with the main changes applying from July 1, 2028.

What are the key ViDA dates?

The main legal act is Council Directive (EU) 2025/516 of 11 March 2025. According to the European Commission, the key dates are:

2025: adoption and entry into force

• 25 March 2025: the ViDA package was published in the Official Journal of the EU.
• 14 April 2025: ViDA entered into force. From this date, member states can introduce mandatory domestic e-invoicing under specific conditions.

2027: first OSS and IOSS changes

• 1 January 2027: minor legislative clarifications take effect for businesses using the OSS and the Import One Stop Shop (IOSS).

2028–2029: platforms, single VAT registration and reverse charge

• 1 July 2028: platforms for short-term accommodation rental and passenger transport by road become deemed suppliers for VAT.
• 1 July 2028: the single VAT registration reforms start. The OSS is extended to more supplies, and a new scheme covers transfers of a business’s own goods between member states.
• 1 July 2028: a mandatory reverse charge applies when a supplier not established in a member state sells to a customer already VAT-registered there.
• 30 June 2029: the call-off stock simplification ends. Goods can only be dispatched under it on or before 30 June 2028.

2030: all platforms covered and digital reporting starts

• 1 January 2030: the latest date by which every member state must apply the platform deemed supplier rule. Each country can start any time from 1 July 2028.
• 1 July 2030: digital reporting requirements apply to cross-border B2B transactions.
• 1 July 2030: EC Sales Lists (recapitulative statements) are abolished and replaced by transaction-level reporting.

2035: domestic systems aligned

• January 2035: member states with domestic real-time reporting systems must have aligned them with the EU model.

How will ViDA digital reporting work from 2030?

From 1 July 2030, intra-EU B2B supplies must be documented with an e-invoice and reported to tax authorities in near real time. The rules are set out in Article 5 of Directive (EU) 2025/516.

• Format: e-invoices must be issued, sent and received in a structured electronic format that allows automated processing. They must comply with the European standard on electronic invoicing.
• Invoice deadline: the supplier must issue the e-invoice no later than 10 days after the chargeable event.
• Supplier reporting: the supplier sends the transaction data when the invoice is issued, or should have been issued.
• Customer reporting: the buyer reports the intra-Community acquisition no later than 5 days after receiving the invoice.
• EC Sales Lists: the current summary returns end, as Articles 265 to 271 of the VAT Directive are deleted.

Tax authorities will share this data through central VIES, set up by Regulation (EU) 2025/517.

Can EU countries make e-invoicing mandatory before 2030?

Yes. Since ViDA entered into force on 14 April 2025, member states can introduce mandatory domestic e-invoicing under specific conditions.

So national mandates can start well before the EU-wide 2030 date. Businesses selling in several EU countries may face different domestic e-invoicing rules before ViDA's cross-border reporting starts.

Countries that use this option can also remove the requirement for the buyer to accept e-invoices. For an overview of national rules, see our guide to electronic invoicing in the EU.

Which businesses does ViDA affect?

ViDA affects most businesses that trade across EU borders, but at different dates:

• EU businesses selling B2B to other member states: e-invoicing and digital reporting from 1 July 2030.
• Platforms for short-term accommodation and road passenger transport: deemed supplier rules between 1 July 2028 and 1 January 2030, depending on the country. The platform is not liable if the provider gives its VAT number and declares it will charge VAT.
• Online sellers holding stock in several EU countries: a new OSS scheme for transfers of own goods from 1 July 2028. See our guide to single VAT registration.
• Non-established suppliers selling to VAT-registered customers: the customer accounts for VAT under the reverse charge from 1 July 2028.
• OSS and IOSS users: minor changes from 1 January 2027.

What’s next for businesses?

Businesses should start reviewing their VAT compliance processes now, even though most changes apply from 2028 or 2030 and full alignment runs to 2035. Key steps include:

• Assessing whether existing invoicing and reporting systems are ViDA-ready.
• Understanding new VAT obligations for platform operators.
• Evaluating the benefits of using the expanded OSS scheme to streamline VAT registrations.
• Checking whether you move your own stock between EU countries, and whether you still rely on call-off stock.
• Asking customers and suppliers in other member states when they will be ready to exchange structured e-invoices.

ViDA is expected to improve VAT collection and compliance across the EU. Some critics argue that it does not fully address long-standing issues, such as complex VAT rates and different approaches among member states. Even so, the reform is a major step towards a more harmonized, digital-first VAT system in Europe. You can also read Key VAT Changes 2025 and What They Mean for Your Business.

Businesses should stay informed and work with tax professionals to ensure a smooth transition as these changes take effect.

Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers. 

How Taxually handles this

Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.

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