The ViDA (VAT in the Digital Age) package has now been published in the EU’s Official Journal. The first wave of changes will start rolling out on 14 April 2025.
On 25 March 2025, the European Union took a major step towards modernising VAT with the official publication of the ViDA package. This initiative updates key legislation including:
- The EU VAT Directive
- The Regulation on VAT administrative cooperation
- The VAT Implementing Regulation
These changes aim to bring VAT rules in line with today’s digital economy. The updated regulations will come into force on 14 April 2025, with further changes phased in through to 2035.
What’s changing first?
From mid-April, the spotlight is on e-invoicing. EU Member States will be allowed to mandate domestic e-invoicing without having to seek prior approval from the European Commission. This move is expected to simplify national implementation and support broader digital transformation goals.
The new approach gives countries the autonomy to shape e-invoicing mandates based on their own administrative and economic needs. For businesses, this means the e-invoicing landscape across Europe could soon become more varied, and faster moving.
Deep dive into ViDA
With the first ViDA measures taking effect soon, now is the time to review your VAT processes and prepare for what’s ahead. Make sure your systems are ready to support e-invoicing mandates as they roll out across the EU.
Need support? Contact us to explore how we can help you prepare.