ViDA

Overview

VAT in the Digital Age (ViDA) is a comprehensive EU initiative to modernize VAT systems across member states through mandatory e-invoicing and real-time digital reporting. It represents the most significant change to EU VAT rules in decades.

Background

The European Commission proposed ViDA in December 2022 to combat the €93 billion annual VAT gap and reduce administrative burden. The initiative builds on the success of national e-invoicing mandates in Italy and will create a harmonized approach across all member states.

Key Requirements

Under ViDA, all intra-EU B2B transactions will require structured e-invoices transmitted through certified platforms. Member states must establish Digital Reporting Requirements (DRR) allowing real-time or near-real-time reporting of invoice data to tax authorities. Domestic transactions may follow national rules but must be interoperable.

Technical Specifications

ViDA will be implemented in phases: Digital Reporting Requirements become mandatory from July 2028 for new registrations and July 2030 for existing businesses. Member states can accelerate domestic mandates. The technical framework relies on EN 16931 standards and allows national variations within defined parameters.

Business Impact

ViDA will fundamentally change how businesses handle invoicing in the EU. Companies need to prepare by implementing e-invoicing capable systems, ensuring ERP integration with certified platforms, and training staff on new requirements. Early adopters will benefit from streamlined processes and improved cash flow visibility.

Related Regulations & Standards