On 11 March 2025, EU Finance Ministers officially approved the VAT in the Digital Age (ViDA) proposal during the ECOFIN meeting. This follows the political agreement reached in November 2024. The ViDA package introduces significant changes to VAT processes, especially in e-invoicing and digital reporting.
Key changes for businesses
The ViDA package will take effect 20 days after publication in the Official Journal of the EU. However, some changes will be phased in over time.
- E-invoicing as the default: By 1 July 2030, e-Invoicing will become the standard method for issuing invoices across the EU. Member States may still allow alternative invoice formats for domestic transactions if authorized.
- New digital reporting requirements (drr): Recapitulative statements for cross-border supplies will replace real-time digital reporting obligations.
- alignment of domestic reporting: If Member States implement real-time reporting for domestic transactions, it must align with the EU’s cross-border standards.
- National systems must converge: By 1 January 2035, all existing national e-Invoicing and reporting systems must align with the EU model.
Future‑proof?
Companies operating in the EU should start preparing for these changes now. Transitioning to e-invoicing and adapting to new digital reporting requirements may require updates to your invoicing systems and internal processes.
Get ready
For further details, read the official EU press release. Stay proactive to ensure your business is compliant with the upcoming regulations.
