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ViDA / Digital VAT

The European VAT reform for the digital age – what changes, when, and how a business can prepare.

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ViDA (VAT in the Digital Age) is the European Union's package for modernising the VAT system through electronic invoicing, digital reporting, changes for the platform economy and a wider single VAT registration. The package was adopted on 11 March 2025, published in the Official Journal of the EU on 25 March 2025, and is being introduced in stages until 2035.

What it includes

What ViDA includes

  • Digital reporting and electronic invoicing

    The new Digital Reporting Requirements (DRR) focus mainly on cross-border B2B transactions within the EU and are based on electronic invoicing.

  • Platform economy

    Special rules for certain platforms in short-term accommodation and passenger road transport.

  • Single VAT Registration

    An extension of the OSS and other mechanisms, to reduce the need for businesses to keep multiple VAT registrations in different member states.

  • More digital exchange of VAT information

    The reform aims at a faster, more structured exchange of data and more effective control of cross-border operations.

Timeline

Verified timeline

ViDA is not a single change that arrives on one date – the reform comes in stages.

  1. 14 April 2025

    The package enters into force. From this moment member states may, under certain conditions, introduce mandatory electronic invoicing. Improvements to IOSS control also apply.

  2. 02

    1 January 2027

    Certain legislative clarifications on OSS/IOSS and part of the Single VAT Registration improvements start to apply.

  3. 03

    1 July 2028

    The main changes to Single VAT Registration begin, as does mandatory reverse charge on certain supplies by unidentified/non-established suppliers. The deemed-supplier rules start for short-term accommodation and passenger transport platforms; member states may, under the conditions provided, defer this part until 1 January 2030.

  4. 04

    1 July 2030

    The new Digital Reporting Requirements start to apply to cross-border B2B operations, with the system based on electronic invoicing.

  5. 05

    by 1 January 2035

    Member states that have domestic real-time digital transaction reporting systems must align them with the European model and standards.

Who it concerns

Which businesses should follow ViDA

  • Companies with cross-border B2B supplies of goods or services within the EU.

  • Businesses that use the OSS or IOSS schemes.

  • Businesses with VAT registrations or operations in more than one member state.

  • Platforms and participants in short-term accommodation and passenger road transport, for which the new platform-economy rules are relevant.

  • Finance and accounting teams that manage invoicing, VAT reporting, ERP/accounting systems and cross-border data.

Preparation

What it means for a business

Practical preparation is about the quality and structure of the data, the invoicing processes, the ability of the accounting and ERP systems to exchange structured information, and the correct tax treatment of cross-border operations.

  1. A review of the processes for issuing, receiving and archiving invoices.

  2. A check that the key VAT and counterparty data is structured and consistent.

  3. A map of the cross-border B2B operations and the VAT schemes used.

  4. An assessment of how ready the accounting/ERP software is for future e-invoicing and digital reporting requirements.

  5. Following the national implementation in Bulgaria, since the directive's rules require transposition and the practical realisation also depends on the national legal and technical framework.

Areas of preparation

Risks: areas of preparation

  • Incomplete or inconsistent data in invoices and systems.

  • Difficulties in the structured exchange of data between accounting, ERP and other systems.

  • Incorrect classification of cross-border operations.

  • Late adaptation of internal processes to the coming digital requirements.

  • No clearly assigned responsibility between the finance, accounting and IT teams.

Oditor AI

A tool for preparation, control and analysis – not a system for filing returns.

Oditor AI supports the preparation of the data and the processes for digital VAT. It is not an official system for filing ViDA returns.

Oditor AI

How Oditor AI supports the preparation

Oditor AI

4 areas

  1. Supporting checks of the quality and consistency of the financial and accounting data.

  2. Detecting discrepancies and risky records before further processing.

  3. Supporting financial control and the preparation of the data for more digital processes.

  4. Centralised visibility of data and deviations, where that functionality is actually available.

Sources

Sources for this page

  1. European Commission – Taxation and Customs Union, “VAT in the Digital Age (ViDA)”.
  2. Council of the European Union – “Taxation: Council adopts VAT in the Digital Age package”, 11.03.2025.
  3. European Commission – ViDA Implementation Strategy and Work Programme 2026.
  4. Legal acts: Directive (EU) 2025/516, Regulation (EU) 2025/517 and Implementing Regulation (EU) 2025/518.

The reform comes in stages. Preparation starts with the data.

Prepare your business for digital VAT

Contact the Oditor AI team for a consultation, or make an enquiry.

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