EU VAT in the Digital Age (ViDA) reforms

Political agreement expected in May 2024

The 3-pillared ‘VAT in the Digital Age’ (ViDA) reforms is expected to win political agreement of EU Finance Ministers in May 2024 (potential to slip to June’s meeting).

The Finance Minister’s working group on indirect tax measures are close to final agreement on the complex Pillar 1, Digital Reporting Requirements, which includes harmonising e-invoicing across the EU member states.

Before then, the next rounds of discussions in March will focus on the less debated Pillar 2 Platform Economy and Pillar 3 Single VAT Registration.

The aim is for political agreement on 14th May at the monthly ECOFIN meeting. New implementation timetable likely to be 2026-2030. Latest issues include:

  • Pillar 1:
    • Pre-validation requirement for e-invoices near agreement with member states committing to minimum checks on intra-community data and being given description on domestic validations;
    • limited format summary invoices will be permitted; compromise expected on proposed disclosure of IBAN payment details;
    • proposal for optional system for domestic transaction digital reporting;
  • Pillar 2:
    • Likely member states will be able to exempt SME’s from new accommodation & ride sharing deemed supplier obligations; and
  • Pillar 3:

What does it mean for your business? Find it out by contacting us.



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