Overview Of ViDA Legislative Package

The Economic and Financial Affairs Council ('ECOFIN') of the EU has now reached political agreement on the 'VAT in the digital age package' ('ViDA'), which introduces significant changes to the EU VAT system.

The ViDA package provides for a number of measures intended to simplify VAT compliance in the digital age and to alleviate the administrative burden for individuals and SMEs. The package also includes measures intended to expedite the provision of data to EU tax authorities, with a view to combatting VAT fraud.

By way of high-level summary, the key changes implemented as part of the ViDA package are as follows:

• Digital Reporting Requirements : The Digital Reporting Requirement ('DRR') is a real-time digital reporting obligation in respect of B2B cross-border supplies of goods and services. The report consists of the return of invoice data by a supplier at the time the invoice is issued (or should have been issued). For self-billing, or in instances