The VIDA project

On 6 November 2024, the Council of the EU adopted the VAT in the Digital Age (VIDA) package.

This project introduces new rules for electronic invoicing between companies and real-time data transmission for intra-community transactions. It also includes new rules on activities carried out via digital platforms and the single VAT registration of taxable companies (Single Window within the EU).

1 - Electronic invoicing and real-time data transmission (Digital Reporting Requirements: DRR) for intra-EU business-to-business transactions

Cross-border transactions within the EU between companies are processed by issuing electronic invoices and automatically communicate the data to their Tax Administration. The EU tax administrations of each Member State then share the data via a new system allowing them to analyse suspicious activities in order to carry out a more effective fight against VAT fraud.

This scheme comes into force on 1 July 2030.

2 - Digital platform economy

Digital platforms are required to collect and remit VAT to the tax authorities (presumed supplier theory).

The Council provided for certain relaxations, at the discretion of the Member States, in the application of this system (definition of short-term rental, exemption for SMEs).

3 - One-stop-shop for VAT registration

The new rules extend the one-stop-shop scheme to sales of certain goods to consumers in other Member States (including electricity and gas), covering stock transfers between Member States.