ViDA: New EU VAT Rules Coming in 2025–2028

What is ViDA?

ViDA stands for VAT in the Digital Age. It’s a major reform package introduced by the European Commission to modernize the EU VAT system in response to the growth of digital and cross-border trade. The ViDA package aims to simplify compliance, reduce fraud, and make VAT processes more efficient through digitalization.

Key Changes and Timeline

From January 2025: Extension of the OSS Regime

• The One Stop Shop (OSS) system will be extended to include more types of B2C cross-border supplies such as:
  • Installation/assembly goods
  • Supplies onboard ships, aircraft, trains
  • Gas, electricity, heating and cooling
  • Domestic supplies under the margin scheme
• Non-Union OSS will cover services from non-EU suppliers to EU non-taxable persons

From July 2027: Platforms Become Deemed VAT Suppliers

• Digital platforms facilitating:
  • Passenger transport (e.g., Uber, Bolt)
  • Short-term accommodation (e.g., Airbnb) will be treated a VAT suppliers.
• These platforms will be responsible for charging and remitting VAT on behalf of unregistered service providers.

From January 2028: Mandatory E-invoicing and Digital Reporting

• Replaces recapitulative statements (e.g., EC Sales List)
• Requires:
  • Structured e-invoices based on EN 16931
  • Reporting within 2 days of invoice issuance
• Improves fraud detection and real-time control across Member States

Why This Matters for Businesses

Benefit	What It Means
Cash flow improvement	Real-time reporting eliminates refund delays
Less complexity	Fewer VAT registrations across EU countries
Better compliance	Unified rules reduce audit risk and errors

Maxwise Is Here to Help

Stay ahead of the curve with expert VAT compliance support.

• Read more insights www.maxwise.eu/vat-in-digital-age
• Contact us info@maxwise.eu
• WhatsApp: +372 5 220 016

Need help preparing your business for ViDA? Reach out to our tax advisors for a
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