What is ViDA and when does it take effect?

What Is ViDA?

ViDA (VAT in the Digital Age) is a comprehensive EU legislative package designed to modernise the European VAT system, combat cross-border VAT fraud, and address the challenges of the platform economy. The Council of the EU formally adopted the package on 11 March 2025, following years of negotiation. According to Invoice Navigator's regulatory tracking across all 27 member states, ViDA is the most significant change to EU VAT since the current system was introduced in 1993.

The Three Pillars

Pillar 1: Digital Reporting Requirements (DRR)

The DRR pillar is the core of ViDA's anti-fraud strategy. It requires businesses to digitally transmit details of cross-border B2B transactions to tax authorities in near real-time, giving member states visibility into the transaction chain to prevent carousel fraud. From 1 July 2030, mandatory e-invoicing and digital reporting apply to all intra-EU B2B transactions and transactions subject to a mandatory reverse charge. The DRR will use EN 16931-based structured invoice formats.

Pillar 2: Platform Economy

The platform economy pillar introduces a "deemed supplier" rule for online platforms that facilitate short-term accommodation and passenger transport services. From 1 July 2028, member states may apply this rule voluntarily; from 1 January 2030, it becomes mandatory across the EU. Under this rule, the platform — not the individual service provider — is treated as the supplier for VAT purposes.

Pillar 3: Single VAT Registration (SVR)

The SVR pillar extends the One Stop Shop (OSS) and Import One Stop Shop (IOSS) mechanisms so that businesses selling goods or services across EU borders can register for VAT in just one member state instead of registering separately in each country where they operate. This takes effect on 1 July 2028.

Implementation Timeline

What Businesses Should Do Now

Although the DRR mandate does not take full effect until July 2030, Invoice Navigator's compliance data shows that businesses already operating in countries with national mandates — Germany, France, Belgium, Poland, Italy — are significantly better positioned for ViDA readiness. Businesses should ensure their invoicing systems support EN 16931 formats, begin capturing the data fields required for digital reporting, and monitor country-level mandates that will merge into the ViDA framework.