VAT in the digital age (“VIDA”) – Agreement in ECOFIN

On 8 December 2022, the European Commission submitted a draft for a Council Directive on the initiative “VAT in the Digital Age” (ViDA) including the long-awaited proposals for modernising VAT rules in the EU. On 5 November 2024, these were adopted unanimously by the Council of the European Union.

In general, the proposal for the Council Directive contains the following set of measures that should enter into force step-by-step.

• Digital Reporting Requirements and E-Invoicing

• Platform Economy

• Single VAT Registration

The proposal for the Council Directive was criticised harshly by some EU Member States. On 8 May 2024, a compromise proposal was published that was discussed by ECOFIN on 14 Mai 2024, but not yet finally resolved. Thereupon, on 30 October 2024 another compromise proposal was published, which was adopted unanimously by the Council of the European Union today, on 5 November 2024.

The new compromise does not include major changes from the previous proposal for the Council Directive. However, the member states now have more time to implement the new regulations.

Deadlines for the entry into force of the amendments of the compromise proposal:

1 July 2028: Single VAT Registration

1 January 2030: Changes to platform economy (voluntary implementation as of 1 July 2028)

1 July 2030: Implementation of digital reporting requirements and compulsory e-invoicing (“DRR”)

For further details regarding the changes due to the ViDA initiative refer to our previous newsletter.

If you have any further questions, please contact your PwC team!