ViDA Package Approved: New EU-Wide
VAT Rules for the Digital Era

On November 5, 2024, ECOFIN approved the Mehrwertsteuer im digitalen Zeitalter (ViDA) package, establishing new requirements across three key areas: e-invoicing, single VAT registration, and VAT obligations for the platform economy. This package builds on the October 30, 2024 draft, incorporating compromises like extended timelines and revised deemed supplier rules.

Timeline:

Early 2025 (with ViDA’s Approval) Member states can implement domestic e-invoicing without prior authorization from the EU Commission.

January 2027: OSS (One Stop Shop) will be extended to include cross-border energy supplies (natural gas, electricity, heating, and cooling).

July 2028: OSS will expand to cover all B2C supplies of goods and services, as well as intra-EU stock transfers.

July 2030: DRR/e-invoicing obligations for intra-EU transactions will be introduced. Harmonization of domestic DRRs introduced after January 2024. Mandatory deemed supplier rule for platforms (optional starting from July 1, 2028).

January 2035: Harmonization of domestic DRRs introduced before January 2024.

Impact:

Following the ViDA package’s approval, the next step is consultation with the European Parliament to align the original European Commission proposal with the text agreed upon by member states.

Businesses should start assessing their current systems and processes to ensure they can adapt to the new requirements.