What is “VAT in the Digital Age (ViDA)”?
On 11 March 2025, the European Commission adopted the VAT in the Digital Age (ViDA) package, aimed at modernising VAT rules within the EU and adapting them to the rapidly evolving digital economy. Businesses across Europe must prepare for far-reaching changes that will be implemented by 2035. This reform has significant implications for international trade and requires immediate adjustments by companies involved in cross-border business.
What does this mean for businesses?
1. E-invoicing becomes mandatory:
From now on, EU Member States can enforce the mandatory introduction of electronic invoicing under certain conditions.
To ensure that they fulfil these new requirements, companies should act now.
How can your company implement this change efficiently, and what are the benefits of e-invoicing for your processes?
2. Optimisation of OSS and IOSS: More efficiency in international trade
The One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) systems will be further enhanced to simplify VAT procedures in cross-border transactions and to minimise fraud risks. It is particularly important for internationally active commercial companies to familiarise themselves with the structural changes in the IOSS in order to ensure their own compliance.
Which opportunities arise from these changes for the efficiency of your business processes?
The optimisation of the One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS) systems offers international trading companies numerous advantages. By simplifying VAT handling and minimising fraud risks, business processes can be made more efficient:
- Less administrative work: Companies benefit from a centralised VAT declaration that facilitates cross-border sales.
- Faster and automated processes: Digital tax reporting reduces the risk of errors and speeds up processes.
- Increased transparency and compliance: The new regulations help to minimise the risk of fraud and ensure compliance with legal requirements.
- Competitive advantage through early adjustments: Those who deal with the changes in good time can optimise their processes and work more efficiently in the long term.
3. New obligations (from 1 July 2028)
From 2028, significant changes will affect platforms that mediate short-term accommodation and passenger transport. With the introduction of deemed supplier measures, digital platforms will be more heavily involved in tax obligations, forcing companies to adapt their tax strategies.
Additionally, reforms to the Single VAT Registration will come into force, including:
- Expanded OSS schemes with more efficient processes and a new ‘transfer of own goods’ system to facilitate cross-border goods movements.
- Obligation to reverse the tax liability (reverse charge) for unidentified suppliers, which means that companies must prepare for a change in invoicing.
4. Digital reporting for B2B transactions (from 1 July 2030)
The gradual digitalisation of VAT continues: From 2030, digital reporting for cross-border B2B transactions will become mandatory. Businesses must adapt to new reporting obligations and adjust their systems accordingly in order to fulfil tax requirements seamlessly.
5. Real-time tax reporting at EU level (by 1 July 2035)
By 2035 at the latest, real-time tax reporting for domestic transactions is to be aligned with EU standards. The goal is a unified, digital VAT system that increases transparency and reduces administrative burden for businesses in the long run.
What strategies should businesses develop to prepare early for these changes?
To adapt effectively, companies should assess and digitalise their tax processes early on. Modernising ERP and accounting systems is essential for efficiently managing the new reporting requirements and real-time reporting.
Compliance strategies also need to be revised, especially regarding the reverse charge procedure and the new taxation rules for platforms. Regular training of finance teams and collaboration with tax advisors will help meet legal requirements in advance.
In addition, pilot projects for digital reporting formats should be launched and ensure that their interfaces with government authorities function smoothly. Those who act now can reduce administrative efforts, ensure compliance, and gain long-term competitive advantages.
6. Unified VAT system:
The new regulations aim to harmonise the VAT system within the EU and thereby reduce the administrative hurdles for businesses. Internationally operating companies will benefit from a standardised and simpler system.
But how can this harmonisation be integrated by your company?
From GEFEG’s perspective, several aspects are of central importance: the standardisation and continuous maintenance of data exchange formats plays a decisive role. GEFEG solutions support companies in efficiently implementing standardised electronic invoice formats and reporting procedures. In addition, GEFEG’s software helps to comply with new EU regulations. Another advantage of the GEFEG software tools is the ability to check and validate exchange data against the harmonised VAT regulations – which further facilitates compliance with legal requirements.
Why should businesses act now?
The introduction of the new ViDA requirements is not only a legal obligation, but also offers companies numerous opportunities to optimise their internal data structures in a highly targeted manner. If companies get to grips with the coming changes at an early stage, they will be able to reap the following benefits:
- Increased efficiency and error reduction: Electronic invoicing enables faster and error-free handling of VAT processes.
- Better compliance: The new rules provide a clearer and safer way to declare VAT, reducing the risk of penalties or errors.
- Reduced complexity in cross-border trade: The harmonisation of VAT regulations simplifies international trade and companies can benefit from uniform processes.
Act now and shape the transformation with GEFEG!
GEFEG supports you with modern solutions that allow you to analyse and implement the new requirements for digital data in your IT systems quickly and efficiently. We offer customised software solutions and consulting services that optimally prepare your company for digital change.
Don’t miss out – act now! Take action and secure a digital advantage for your company. Get in touch with us and find out as early as possible what changes you need and what support GEFEG can offer you to achieve strategic advantages in implementing the new ViDA requirements.
