What is ViDA?
VAT in the Digital Age — The EU's most significant VAT reform in 30 years, making e-invoicing mandatory across Europe.
ViDA was officially adopted by the EU Council on March 11, 2025. It introduces mandatory structured e-invoicing for all B2B transactions, real-time digital reporting to tax authorities, and standardized formats across all 27 member states. The rollout continues through 2035.
27
EU countries affected
2030
Intra-EU deadline
€11B
Fraud reduction target
€4.1B
Annual cost savings
Understanding ViDA
The Three Pillars of ViDA
ViDA is built on three major reforms that will transform how businesses handle VAT across the European Union.
Digital Reporting & E-Invoicing
Mandatory structured e-invoicing (EN 16931) for all B2B transactions. Near-real-time reporting of transaction data to tax authorities. No more PDFs or paper invoices.
Deadline: July 2030 for intra-EU
Platform Economy
New VAT obligations for platforms facilitating short-term accommodation (like Airbnb) and passenger transport (like Uber). Platforms become "deemed suppliers" responsible for VAT.
Deadline: July 2028 (mandatory)
Single VAT Registration
Expanded One-Stop Shop (OSS) to reduce the need for multiple VAT registrations across EU countries. Simplified cross-border compliance for businesses selling across the EU.
Deadline: July 2028
Key Dates
ViDA Implementation Timeline
March 2025
ViDA adopted by EU Council. Legal barriers to e-invoicing removed. Member states can now mandate domestic e-invoicing without EU approval.
January 2025 — Germany 🇩🇪
B2B e-invoice reception mandatory. All businesses must accept structured e-invoices (XRechnung, ZUGFeRD).
January 2026 — Belgium 🇧🇪
Full B2B e-invoicing mandate. All Belgian VAT-registered companies must send AND receive via Peppol network.
February 2026 — Poland 🇵🇱
KSeF (Krajowy System e-Faktur) becomes mandatory. All invoices must pass through national e-invoicing platform.
September 2026 — France 🇫🇷
Reception mandatory for all. Large and mid-size companies must also send e-invoices. SMEs follow in 2027.
January 2027 — Germany 🇩🇪
Large companies (€800K+ turnover) must send e-invoices. Smaller companies follow January 2028.
July 2030 — All EU 🇪🇺
Mandatory e-invoicing for ALL intra-community B2B transactions. EN 16931 format required. Real-time reporting to tax authorities.
January 2035 — Harmonization
All existing national e-invoicing systems must be fully aligned with EU standards. Complete harmonization achieved.
Who's Affected
Does ViDA apply to your business?
If you do business in the EU — whether you're based there or not — ViDA likely affects you. The scope is intentionally broad.
EU-based businesses
All VAT-registered companies in any of the 27 member states
Non-EU businesses with EU operations
Companies based outside EU but selling to EU customers
Cross-border traders
Any business invoicing between EU member states
Platform businesses
Short-term accommodation and transport platforms
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FAQ
Common Questions About ViDA
What does ViDA stand for?
ViDA stands for 'VAT in the Digital Age'. It's a comprehensive EU initiative to modernize the VAT system through digitalization, including mandatory e-invoicing and real-time reporting.
When does ViDA come into force?
ViDA was adopted in March 2025 and is being implemented gradually. Member states can now mandate domestic e-invoicing immediately. The EU-wide requirement for intra-community transactions takes effect July 2030.
Is e-invoicing now mandatory in the EU?
It depends on the country and transaction type. Some countries (Germany, Italy) already have mandates. Others (Belgium, France, Poland) are implementing them in 2026. By 2030, all intra-EU B2B transactions will require e-invoicing.
What format do I need for ViDA compliance?
ViDA requires EN 16931-compliant structured e-invoices. However, each country may specify additional formats: XRechnung (Germany), Peppol BIS (Belgium), Factur-X (France), KSeF (Poland), or FatturaPA (Italy).
Does ViDA affect small businesses?
Yes, but with different timelines. Many countries implement mandates for large companies first, then extend to SMEs. Check your specific country requirements to know your exact deadline.
What happens if I don't comply with ViDA?
Penalties vary by country. France can fine €15 per non-compliant invoice (capped at €15,000/year). Germany may deny VAT deductions. Non-compliance can also lead to delayed payments and rejected invoices.
Do I need Peppol for ViDA?
Not necessarily. Peppol is mandatory in Belgium and common in other countries, but it's not the only option. Germany accepts XRechnung directly. France uses a platform system. Check your specific country requirements.
How do I prepare for ViDA?
Start by checking which requirements apply to your business using our Obligation Finder. Then: 1) Ensure your ERP can send/receive structured invoices, 2) Register with required platforms (Peppol, KSeF, etc.), 3) Update your invoicing processes.
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