ViDA

ViDA (VAT in the Digital Age)

• Definition: An EU legislative initiative for the far-reaching modernization of the VAT system, to be implemented in stages by January 2035, aimed at curbing tax fraud.
• The Three Pillars:
  1. Digital reporting requirements (DRR): Mandatory, near-real-time e-invoicing and reporting system for cross-border B2B transactions based on the EU standard, starting in July 2030.
  2. Platform economy: New liability rules (“deemed supplier”) for digital platforms in the transport and accommodation sectors starting July 2028.
  3. Single VAT Registration (SVR): Reduction of bureaucratic hurdles through the expansion of the central One-Stop Shop (OSS).
• Significance for banks: Replacement of static PDF invoices with machine-readable XML formats (EN16931) for taxable service fees.

Sources:

• Directive – EU – 2025/516
• Regulation – EU – 2025/517
• Implementing regulation – EU – 2025/518