VAT in the Digital Age (ViDA): From Proposal to Law — 2026 Status and Implementation Timeline
The “VAT in the Digital Age” (ViDA) package is no longer a proposal under discussion — it is now EU law. The ViDA package was adopted on 11 March 2025 following re-consultation of the European Parliament and will be rolled out progressively until January 2035. This article explains what has been agreed, what is already in force, and what businesses need to prepare for as the phased implementation unfolds. European Commission
Background and goals
ViDA was first proposed by the European Commission in December 2022. Its three core objectives are to digitalize VAT reporting through mandatory e-invoicing and real-time transaction data, to address the VAT obligations of digital platforms in the accommodation and passenger transport sectors, and to simplify cross-border VAT registration through an expanded One Stop Shop (OSS) system. The new system introduces real-time digital reporting for cross-border trade, based on e-invoicing. The move to e-invoicing is expected to help reduce VAT fraud by up to €11 billion a year and bring down administrative and compliance costs for EU traders by over €4.1 billion per year over the next ten years. European Commission
Legislative timeline
The political agreement at ECOFIN level was reached unanimously on 5 November 2024. The European Parliament approved the package on 12 February 2025. The package was adopted by the Council of the European Union on 11 March 2025, published in the Official Journal of the European Union on 25 March 2025, and came into force on 14 April 2025.
What is already in force — from 14 April 2025
From 14 April 2025, Member States are allowed to mandate domestic e-invoicing without needing special approval from the EU, and customers can no longer refuse e-invoices. This removes the two main barriers that previously slowed e-invoicing adoption in several Member States. Countries including France, Poland, Belgium and Spain are expected to introduce domestic B2B e-invoicing mandates under this new framework in the coming years.
Additionally, improvements were made to the Import One-Stop-Shop (IOSS) framework to enhance control tools from the point of entry into force.
1 January 2027 — OSS clarifications
From 1 January 2027, the OSS will be further extended to allow the inclusion of B2C supplies in the e-charging sector. Certain legislative clarifications for users of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes will also become effective. European Commission
1 July 2028 — Platform economy and Single VAT Registration
From 1 July 2028, platforms in short-term accommodation rental and passenger transport by road must comply with new deemed supplier measures, while the Single VAT Registration reforms and mandatory reverse charge for non-identified suppliers will start. European Commission
Under the deemed supplier rules, platforms facilitating short-term accommodation rentals (defined as stays of up to 30 nights) and passenger transport by road will be responsible for collecting and remitting VAT on behalf of their suppliers, unless those suppliers provide a valid VAT number and declare that they will handle VAT themselves. Member States may delay implementation of the deemed supplier rules until 1 January 2030.
The Single VAT Registration (SVR) reform expands the OSS to cover cross-border transfers of own goods, significantly reducing the need for multiple local VAT registrations across the EU for e-commerce and logistics businesses.
1 July 2030 — Mandatory Digital Reporting Requirements (DRR)
Digital Reporting Requirements will affect cross-border B2B transactions from 1 July 2030. From this date, all businesses engaging in intra-EU B2B transactions will be required to issue structured electronic invoices compliant with the European e-invoicing standard (EN 16931) and report transaction data digitally within 10 days of the invoice date. This replaces the current EC Sales List (VAT-EU) reporting system. European Commission
The OSS return will be adapted to include a new reporting module for the movement of own goods, enabling hundreds of thousands of e-commerce sellers and B2B businesses to significantly cut their foreign VAT registrations.
1 January 2035 — Full convergence of domestic and cross-border systems
By 1 January 2035, Member States with a domestic digital real-time transaction reporting obligation must align their systems with the EU standard cross-border digital reporting system. This is the final stage of harmonisation across the EU. European Commission
Where things stand in 2026
Following the March 2025 adoption, progress is underway on draft Explanatory Notes during spring 2026, with final versions expected by end of 2026 or early 2027. Member States are in the process of transposing the ViDA Directive into national law. The European Commission published its ViDA 2026 Work Programme in May 2026 to support the rollout.
Businesses should now be actively assessing which ViDA milestones affect their operations, engaging with software providers on e-invoicing readiness, and monitoring national implementation announcements in the countries where they operate.
What this means for your business
The immediate priority for most businesses is domestic e-invoicing. If you trade in France, Poland, Germany, Belgium or other countries moving quickly on mandatory B2B e-invoicing, timelines may be shorter than the EU-level 2030 deadline. For businesses trading cross-border within the EU, the 2028 SVR reform and 2030 DRR deadline are the key milestones to plan for.
For questions or additional information about ViDA compliance and what it means for your VAT obligations, please contact our team of experts: Contact us — amavat®
Iga Turniak
