ViDA Proposal Approved by the European Parliament

On February 12, 2025, the European Parliament approved the VAT in the Digital Age (ViDA) proposal. This decision marks a major milestone in the digitalization of VAT processes across the European Union. The proposal is expected to be formally ratified by the European Council in March 2025.

ViDA aims to enhance transparency and harmonization of VAT processes through three main pillars:

• E-invoicing and Real-time Digital Reporting

• Single VAT Registration

• Updated Rules for the Platform Economy

Mandatory E-Invoicing and Compliance Deadlines

• From the time of ratification, EU Member States can mandate true e-invoicing for domestic transactions without requiring prior approval from the EU.

• Starting in 2030, e-invoicing and digital reporting will become mandatory for intra-community transactions.

• Member States with existing Continuous Transaction Controls (CTC) models must fully align with ViDA requirements by 2035.