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VAT in the Digital Age (ViDA) formally adopted

On 11 March 2025, the Council of the European Union formally adopted the VAT in the Digital Age (ViDA) package, which marks a major milestone in the EU’s efforts to modernise VAT rules and align them with the digital economy.

date:  04/04/2025

These reforms aim to streamline VAT compliance, reduce administrative burdens, and strengthen fraud prevention across the Single Market. The main components include:

  • Digital Reporting Requirements (DRR): Mandating eInvoicing and near real-time reporting for intra-EU transactions will be effective from 1 July 2030.
  • New VAT Rules for the Platform Economy: Platforms facilitating short-term accommodation or passenger transport will be responsible for collecting and remitting VAT under certain conditions.
  • Single VAT Registration: Businesses will benefit from simplified procedures and an expanded one-stop shop, limiting the need for multiple VAT registrations across Member States.

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