The ViDA Package Has Been Adopted: Key Changes to the EU VAT System
31. 7. 2026
On 11 March 2025, the Council of the European Union adopted the VAT in the Digital Age (ViDA) legislative package, which amends the rules governing value added tax (VAT). The package consists of Council Directive (EU) 2025/516, Council Regulation (EU) 2025/517, and Council Implementing Regulation (EU) 2025/518. The adopted legislation provides for the phased implementation of the individual measures through to 2035.
According to information published by the European Commission, the reform focuses on three main areas. The first concerns Digital Reporting Requirements (DRR) for cross-border transactions between taxable persons, including the use of electronic invoicing. The second concerns VAT rules applicable to digital platforms facilitating short-term accommodation and road passenger transport. The third introduces changes to the VAT registration system within the European Union, expanding the scope for using a single VAT registration for cross-border transactions.
The measures will not take effect simultaneously. Instead, the legislation establishes a phased implementation timetable over the coming years.
Timetable for the Implementation of the ViDA Reform
14 April 2025
The legislative package entered into force. From this date, Member States have been able, subject to the conditions laid down in EU legislation, to introduce mandatory electronic invoicing. At the same time, changes concerning the Import One Stop Shop (IOSS) entered into force.
1 January 2027
Changes to the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes will take effect. Among other things, the legislation clarifies the method for calculating the EUR 10,000 threshold applicable to cross-border B2C supplies, amends certain rules governing registration for the OSS and IOSS schemes, modifies VAT refund procedures, and introduces other amendments relating to the operation of these special schemes. This phase also includes changes concerning the Single VAT Registration (SVR) system.
1 July 2028
New VAT rules for digital platforms facilitating short-term accommodation and road passenger transport will apply. On the same date, a further phase of the Single VAT Registration (SVR) reform will enter into force, including provisions on the application of the reverse charge mechanism in cases specified by EU legislation. Under certain conditions, Member States may defer the application of some platform-related rules until 1 January 2030.
1 July 2030
The Digital Reporting Requirements (DRR) for cross-border B2B transactions will become applicable. Electronic invoicing will also become the default invoicing method for transactions falling within the scope of the new reporting system.
1 January 2035
By this date, Member States operating domestic real-time digital reporting systems must ensure that those systems are aligned with the EU model.
As part of the implementation of the reform, the European Commission plans to publish Explanatory Notes during 2026 and 2027. These documents are intended to support the consistent interpretation of the new legislation and facilitate its practical application, particularly in relation to electronic invoicing, digital reporting requirements and the VAT rules applicable to digital platforms.
According to information published by the European Commission, the reform focuses on three main areas. The first concerns Digital Reporting Requirements (DRR) for cross-border transactions between taxable persons, including the use of electronic invoicing. The second concerns VAT rules applicable to digital platforms facilitating short-term accommodation and road passenger transport. The third introduces changes to the VAT registration system within the European Union, expanding the scope for using a single VAT registration for cross-border transactions.
The measures will not take effect simultaneously. Instead, the legislation establishes a phased implementation timetable over the coming years.
Timetable for the Implementation of the ViDA Reform
14 April 2025
The legislative package entered into force. From this date, Member States have been able, subject to the conditions laid down in EU legislation, to introduce mandatory electronic invoicing. At the same time, changes concerning the Import One Stop Shop (IOSS) entered into force.
1 January 2027
Changes to the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes will take effect. Among other things, the legislation clarifies the method for calculating the EUR 10,000 threshold applicable to cross-border B2C supplies, amends certain rules governing registration for the OSS and IOSS schemes, modifies VAT refund procedures, and introduces other amendments relating to the operation of these special schemes. This phase also includes changes concerning the Single VAT Registration (SVR) system.
1 July 2028
New VAT rules for digital platforms facilitating short-term accommodation and road passenger transport will apply. On the same date, a further phase of the Single VAT Registration (SVR) reform will enter into force, including provisions on the application of the reverse charge mechanism in cases specified by EU legislation. Under certain conditions, Member States may defer the application of some platform-related rules until 1 January 2030.
1 July 2030
The Digital Reporting Requirements (DRR) for cross-border B2B transactions will become applicable. Electronic invoicing will also become the default invoicing method for transactions falling within the scope of the new reporting system.
1 January 2035
By this date, Member States operating domestic real-time digital reporting systems must ensure that those systems are aligned with the EU model.
As part of the implementation of the reform, the European Commission plans to publish Explanatory Notes during 2026 and 2027. These documents are intended to support the consistent interpretation of the new legislation and facilitate its practical application, particularly in relation to electronic invoicing, digital reporting requirements and the VAT rules applicable to digital platforms.