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What does the ViDA (VAT in the Digital Age) package mean?
On November 5, 2024, at the ECOFIN (Economic and Financial Affairs Council) meeting, EU member states voted on new VAT regulations. This package includes three main areas of change:
Digital VAT Reporting:
- Introduction of real-time transaction reporting.
- Mandatory use of e-invoices.
- Standardization of the information contained in invoices.
- Reducing the possibility of using summary invoices.
Changes in the Digital Platforms Area:
- Digital platforms (e.g., Airbnb and Uber) will be required to charge and collect VAT on certain transactions when sellers do not do so. This includes short-term home rentals and passenger transportation.
Single VAT Registration (SVR):
- Easier VAT registration for companies operating in multiple EU countries - one registration is sufficient.
- Simplified rules for handling transactions between countries.
How is it worth preparing for this?
These changes will come into effect gradually. It is worth thinking about a partner who will take care of:
- Analyzing the impact of the new regulations on your business.
- Implementing solutions that will facilitate compliance with the new requirements, such as real-time reporting and e-invoicing.
- Monitor current guidelines and adjust your accounting and tax processes.
ViDA Package Implementation Schedule
- Single VAT Registration (SVR) - scheduled for July 2028.
- Changes for Digital Platforms - January 2030, with early implementation possibly starting in July 2028.
- Digital Reporting and e-Invoicing - July 2030 (full implementation by January 2035).
These changes may require your company to prepare for the new legal and technical requirements. Plan to implement the necessary solutions to help you adapt to the new tax reality.
