Yesterday, the Economic and Financial Affairs Council (ECOFIN) reached consensus on the ViDA (VAT in Digital Age) package, which is a set of VAT reforms designed to align EU law with the requirements of the digital era.

The most important changes  brought about by ViDA:

  • duty to use electronic invoicing and real-time digital reporting of intra-Community transactions;
  • more transactions in which digital platforms will be responsible for tax collection and accounting, and broader record keeping requirements for them;
  • enhancement and development of existing one-stop shops and import one-stop shops, and of the reverse charge mechanism.

 

ViDA significantly modifies the current VAT reporting duties and introduces sweeping changes in VAT compliance for cross-border traders, including those using digital platforms. Thus, you may want to know more about the projected changes to make appropriate preparations in due time.