On September 24, 2025 the European Commission released a document containing its implementation strategy for the VAT in the Digital Age (ViDA) package.

This implementation strategy sets out the actions that the Commission will deploy to support businesses and Member States with the implementation of the VAT in the Digital Age (ViDA) package. The ViDA package is a set of three legislative acts (amendments to the VAT Directive, the Regulation on administrative cooperation, and the Council Implementing Regulation) and is intended to modernise the EU’s VAT system, make it work better for businesses and be more resilient to fraud, and address the challenges in VAT raised by the development of the platform economy.

The ViDA package introduces new digital reporting requirements, addresses challenges in the platform economy sector with specific VAT adaptations, and develops a more streamlined single VAT registration process. The new implementation strategy highlights the different steps required for these measures to enhance the transparency of digital transactions, aligning them with the EU’s broader digital policies, and simplifying compliance for businesses operating across borders.

The package consists of three parts:

1. Digital Reporting Requirements (DRR);
2. Platform economy; and
3. Single VAT Registration (SVR).

The ViDA package was adopted on 11 March 2025 and published on 25 March 2025. The specific timing of the various elements of the package is as follows:

• Upon entry into force, i.e. on 14 April 2025, Member States are able to introduce mandatory e-invoicing under specific conditions, and improvements are made to the Import One-Stop-Shop (IOSS) framework for improved controls;
• As from 1 January 2027, certain legislative clarifications for users of the One Stop Shop (OSS) and IOSS schemes will become effective. Further, certain SVR improvements will also enter into application on that date;
• From 1 July 2028, platforms in short-term accommodation rental and passenger transport sectors must comply with new deemed supplier measures (unless the Member State has opted to delay implementation to 1 January 2030), while the main SVR reforms and mandatory reverse charge for non-identified suppliers will begin;
• DRR will affect cross-border B2B transactions from 1 July 2030, where e-invoicing will become mandatory and the default method for invoicing;
• By 1 January 2035, Member States with a domestic digital real-time transaction reporting obligation must align their systems with the cross-border digital reporting system, marking the final phase of this comprehensive ViDA package.

The document released on September 24, 2025 concludes by stating that: “to achieve implementation by the different deadlines, it is necessary to ensure that appropriate human, technical and financial resources are allocated to this project. This is true of the Commission, Member States and the business community. The importance of all actors working together in a timely and transparent manner is vital to ensure the smooth and efficient implementation of this flagship package.”

The document released on September 24, 2025 furthermore discusses a.o. the following subjects:

• Introduction;
  • Digital Reporting Requirements (DRR);
  • Platform economy;
  • Single VAT Registration (SVR);
• Engagement;
• Timing;
• Points for attention;
  • General;
  • Staggered application of the measures;
  • Specific points for attention relating to DRR;
  • Specific points for attention relating to the platform economy;
  • Specific points for attention relating SVR;
• Specific risks for implementation;
• Further mitigation measures and support in implementation;
  • Communication;
  • Outreach to the business community, Member States and EU institutions;
  • Implementing acts;
  • T. capacity building;
    • Under the DRR volet;
    • Under the SVR volet;
  • TSI (Technical Support Instrument);
  • Fiscalis;
  • Explanatory notes;
  • Support in transposition of the Directive and legal implementation;
  • Enforcement actions;
• Major Milestones; and
• Resources.

The document containing the European Commission’s implementation strategy for the VAT in the Digital Age package as published on September 24, 2025 can be found here in Pdf-format.

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