VIDA (
VAT in the Digital Age) is the European Union’s major reform initiative to modernize VAT systems for a digital economy. It introduces harmonized e‑invoicing, real‑time reporting, and simplified cross‑border compliance across all Member States.
VIDA is built on three core pillars:
- Digital Reporting & Mandatory E‑Invoicing
Structured e‑invoicing (EN 16931) becomes the default for intra‑EU B2B transactions, supported by near‑real‑time reporting to tax authorities.
- Platform Economy Rules
New deemed‑supplier provisions clarify VAT responsibilities for digital platforms facilitating accommodation, transport, and goods.
- Single VAT Registration (SVR)
Expanded OSS/IOSS systems reduce the need for multiple VAT registrations and streamline cross‑border VAT obligations.
Who is affected:
EU and non‑EU businesses, digital platforms, accounting firms, and software providers will all need to adapt to structured invoicing and new reporting workflows.
Timeline:
2025–2027...