What is ViDA?<br>“VAT in the Digital Age” (ViDA) is an EU reform adopted in March 2025, aiming to modernize VAT systems for the platform economy, cross-border trade, and fraud prevention. Its 2026 work programme, published on 22 May 2026, outlines key implementation timelines. (taxation-customs.ec.europa.eu)
Key Phases & Deadlines You Should Track
| Date | What Happens |
|---|---|
| 1 January 2027 | OSS (One-Stop Shop) will be extended to include B2C supplies in the e-charging sector. Legislative clarifications for OSS and IOSS users also effective. (taxation-customs.ec.europa.eu) |
| 1 July 2028 | Platforms in short-term accommodation rental and passenger transport by road must comply with new “deemed supplier” rules. The Single VAT Registration reform—including reverse charge for non-established suppliers—begins. (taxation-customs.ec.europa.eu) |
| 1 July 2030 | Cross-border B2B transactions require mandatory e-invoicing and new Digital Reporting Requirements (DRR). (taxation-customs.ec.europa.eu) |
| 1 January 2035 | Final alignment: Member States with domestic digital real-time transaction reporting must have systems compatible with cross-border DRR. (taxation-customs.ec.europa.eu) |
Impacts on Businesses Operating in or Selling to the EU
- Non-established suppliers (businesses without a physical EU presence) will face reverse charge VAT regimes: liability shifts onto the EU purchaser unless the supplier complies with registration and reporting under ViDA.
- Platforms (e.g., short-term rental sites, transport apps) will have liability or compliance duties as “deemed suppliers”—meaning platforms might need to collect and remit VAT in certain situations.
- Invoicing and reporting systems must adapt: from DRR and mandatory e-invoicing for B2B, to integrating real-time transaction reporting
Actionable Guidance for Compliance
- Map your supply chains and client base: Identify where you're non-established, selling or supplying via platform, or engaging in B2B cross-border transactions.
- Upgrade digital systems: Ensure invoicing software meets future e-invoicing and DRR requirements. Automate data capture, integrate with platforms, consider certified tools.
- Educate and negotiate with platforms: if you're dependent on marketplaces (for example for short-term rentals or transport), understand and negotiate the VAT risk / liability.
- Plan cash flow: These VAT changes may affect when VAT is payable / reclaimable under new reverse charge or platform schemes.
Case Example
A UK developer offering SaaS subscriptions to EU business customers: by 1 July 2030, B2B cross-border invoices must use e-invoicing and report via DRR. The developer should ensure their billing system output aligns and that they register in needed member states—or use one-stop shop services.
Summary
ViDA is a transformative reform: it promises efficiency and fraud prevention, but also requires technology, legal, and process adjustments. Businesses have time—multiple phased deadlines—but early preparation will avoid costly penalties, delayed invoices, or missed opportunities.