VAT In The Digital Age (ViDA)

On 8 December 2022, the European Commission published its legislative proposals in the framework of the VAT in the Digital Age initiative, contemporizing the EU's VAT system by employing technological advances to reduce VAT non-compliance and fight VAT fraud.

The EC proposes action in three key pillars including:

Real time digital reporting and e-invoicing obligations

As of 2028, businesses involved in intra-Community supplies (B2B cross border) will be obliged to issue structured e-invoices, conforming to EU standards, within two days of the transaction and to digitally report data to tax authorities within two days of the invoice date. Member States must abide to the same EU standards when choosing to adopt mandatory e-invoicing and digital reports for domestic transactions.