VAT goes digital: timeline and impact for businesses

After the formal publicaton of the new rules under VAT in the digital age (ViDA) in March 2025 the European Commission recently published its implementation strategy. The strategy shows that the ViDA implemenation will ask much of both businesses and EU Member States as well as the European Commission. It shows that it is important to prepare your business for the changes in time. The European Commission will also help business by publishing explanatory notes on all three pillars of ViDA.  

The three ViDA pillars 

ViDA has three pillars about which we informed you earlier:  

• E-invoicing and digital reporting 

The first pillar of ViDA introduces mandatory e-invoicing and digital reporting for cross-border transactions starting 1 July  2030. Additionaly, Member States have the option to introduce e-invoicing and digital reporting for domestic transactions. Businesses must adapt their systems to meet strict reporting timelines and formats.  

• Platform economy 

The new VAT rules for the platform economy introduce a deeming provision making platforms liable for VAT on short-term accommodation rental and passenger transport by road. Additionally, new place-of-supply rules and an extended record-keeping obligation are introduced.   

• Single VAT registration  

The Single VAT registration aims to reduce the number of VAT registrations of businesses by expanding the One Stop Shop (OSS) scheme, introducing a mandatory reverse charge mechanism, and a new regime for transfers of own goods. 

We also provided you with a timeline in which the gradually coming into application of the provisions under the three pillars is explained.  

Explanation of the rules 

The recently pubslished implemenatation strategy of the European Commission shows that the European Commission will provide explanatory notes on all three pillars of ViDA. In this non-legally binding explanatory notes detailed explanations on the application of the new rules will be provided. Pursuant to the implementation strategy of the European Commission the explanatory notes on the three pillars can be expected in:  

• E-invoicing and digital reporting – fourth quarter of 2026 
• Platform economy – first quarter of 2027 
• Single VAT registration – no date yet provided. 

The European Commission also intends to regulary update the ViDA webpage. Last but not least specific communication campaigns will be developed for each of the milestones in the ViDA-package. It is expected that this will start six to nine months before each main milestone.  

What do you need to do? 

In order to prepare for the upcoming changes it is important to keep up to date about the developments regarding ViDA. We will of course help you with this via articles on our website. We can also help you with mapping out how ViDA will impact your businesses. Some changes in the way you operate your business may help you benefiting from the changes more effectively. Last but not least, BDO can help you with implementing the new rules into your business. 

More information 

If you have any questions regarding ViDA, we are happy to assist you. Please contact one of our VAT advisors for more information.