On 11 March 2025, the European Commission took an important step towards modernizing the tax system by approving the “VAT in the Digital Age” (ViDA) reform package. This package brings significant changes to the European Union’s VAT framework, updating the VAT Directive 2006/112/EC, the Implementing Regulation (EU) No 282/2011, and the Administrative Cooperation Regulation (EU) No 904/2010.

While the regulations will enter into force upon their publication in the Official Journal of the European Union, the amendments to the VAT Directive must first be transposed into the national laws of each Member State.

The aim of the ViDA reforms is not only to strengthen the fight against VAT fraud but also to reduce the administrative burden for businesses and make VAT compliance simpler and more transparent. The reforms are also designed to better reflect the reality of an increasingly digital economy.

Several important changes are planned under ViDA, with the following having the widest impact on businesses:

1. EU-Wide Adoption of E-Invoicing

One of the core elements of ViDA is the introduction of mandatory e-invoicing across the European Union. Although the final deadline for full implementation is set for 1 July 2030, Member States may require sellers to issue e-invoices compliant with the European standard as early as 1 January 2028. This means many businesses will need to prepare for the transition earlier than expected to meet the new requirements.

2. Transition to a Single Digital VAT Reporting System

Another major reform is the obligation to adopt a unified digital VAT reporting system. This requirement will come into effect on 1 July 2030. However, Member States that already operate similar reporting systems may exceptionally defer implementation until 2035. The purpose of this change is to harmonize reporting processes across the EU and simplify daily operations for both tax authorities and businesses.

3. EU-Wide VAT Registration System

A third key change under ViDA is the introduction of a new EU-wide VAT registration system. This will enable businesses to manage their VAT obligations across the EU through a single registration, significantly simplifying cross-border trade and reducing the need for multiple VAT registrations in different Member States.

4. Updated VAT Rules for Digital Platforms

In addition to the above, ViDA also introduces new VAT rules for digital platforms facilitating short-term accommodation and passenger transport services. The goal is to prevent competitive distortions between services provided through platforms and those provided outside them. Under certain conditions, platforms will be deemed the supplier of the service, becoming responsible for charging and remitting VAT. These rules are set to enter into force on 1 July 2028, with the possibility for Member States to extend the transition period until 1 January 2030 under specific circumstances.

For more information and official documents, please visit: VAT in the Digital Age (ViDA) – European Commission

How Telema Can Help Businesses Adapt to ViDA Changes

The ViDA reforms, especially the mandatory adoption of e-invoicing and digital VAT reporting, mean that businesses will need to significantly upgrade their invoicing and reporting systems. As a leading e-invoicing operator, Telema is ready to help companies manage this transition smoothly.

We offer solutions that:

• Enable the sending and receiving of e-invoices compliant with the European standard – for both domestic and international partners.

• Integrate with existing ERP and accounting systems, minimizing the need for major IT developments.

• Support the standardization and digitalization of data, helping businesses prepare for future digital VAT reporting requirements.

• Ensure data security and compliance with current regulations across all EU Member States.

If you would like to assess how well your company is prepared for the ViDA changes, feel free to contact us. Together, we will find the best solution for your needs!

Get in touch with us: info@telema.com