ViDA – VAT in the Digital Age

On 11 March 2025, the Council of the European Union approved the legislative package “VAT in the Digital Age” (ViDA), which amends the current VAT Directive. The implementation of these measures will be gradual, with deadlines set through to 2035.

The ViDA package is structured around three main pillars, as follows:

a. E-invoicing and digital VAT reporting:

As of 20 days following the official publication of the ViDA Directive, Member States may impose e-invoicing for domestic transactions without needing to request further derogations.
From 1 July 2030, e-invoicing will become mandatory for cross-border B2B and B2G transactions. Digital reporting of data to tax authorities will follow a standardized EU-wide format.
Full harmonization of e-invoicing and digital reporting systems across all Member States is expected by 1 January 2035.
The introduction of digital reporting is intended to replace the current recapitulative (VIES) statements for intra-community transactions.

b. New VAT rules for online platforms:

From 1 July 2028, platforms facilitating short-term accommodation rentals and passenger transport services will be liable to collect and remit VAT in cases where their providers are not VAT-registered and do not charge VAT themselves. However, the ViDA package allows Member States to defer this measure until 1 January 2030.
Additionally, clarifications are introduced concerning the VAT place of supply for facilitation services provided by platforms, as well as for the underlying rental and/or transport services.

c. Single VAT registration (One-Stop Shop):

This pillar aims to extend the One-Stop Shop (OSS) mechanism and simplify VAT registration procedures for businesses operating in multiple Member States. As of 1 January 2027, OSS will include B2C supplies of electricity and gas. From 1 July 2028, it will also cover cross-border transfers of goods.
As a consequence, the current simplification rules for call-off stock arrangements will be eliminated by no later than 30 June 2029.
Also starting from 1 July 2028, VAT liability will shift from the supplier to the customer (via the reverse charge mechanism) in transactions where the supplier is neither established nor VAT-registered in the Member State where VAT is due. While this mechanism is already applied in some Member States (Romania being one of them), it will become mandatory across the EU.

Source: Council Directive (EU) 2025/516 of 11 March 2025 amending Directive 2006/112/EC as regards VAT rules for the digital age