European Union · VAT

EU VAT ViDA Reform 2028: What Businesses Must Start Preparing for Now

The EU’s VAT in the Digital Age (ViDA) package introduces sweeping changes by 2028. With the clock ticking, here is what the reforms mean and why preparation should start today.

What is ViDA and why does it matter now?

The European Union’s VAT in the Digital Age (ViDA) package is the most far-reaching overhaul of EU VAT in decades. Phased in between 2025 and 2030, with major milestones landing by 2028 and 2030, ViDA modernises how businesses report, how digital platforms account for VAT, and how cross-border sellers register. With the clock ticking, preparation should start today.

The three pillars of ViDA

ViDA rests on three connected pillars:

1. Digital reporting requirements — real-time, transaction-level reporting based on e-invoicing
2. Platform economy — deemed-supplier rules for certain digital platforms
3. Single VAT registration — expanding the One-Stop Shop (OSS) so businesses can use one registration across the EU

1. Digital reporting requirements

ViDA introduces EU-wide digital reporting requirements (DRR) built on structured e-invoicing. The headline target is near real-time transaction reporting for intra-EU transactions by 2030, replacing the older recapitulative statements (EC Sales Lists). Member states will also be able to mandate domestic e-invoicing more freely. Businesses should expect to issue structured e-invoices and report transaction data to tax authorities much faster than today.

2. Platform economy: deemed supplier rules

ViDA extends deemed-supplier rules to the platform economy, with a particular focus on short-term accommodation and passenger transport platforms. Where a platform facilitates these supplies, it may become responsible for collecting and remitting the VAT — even when the underlying provider would not have charged VAT directly. This shifts compliance from many small providers to the platforms that connect them with customers.

3. Single VAT registration

The third pillar reduces the need for multiple VAT registrations across member states. By expanding the One-Stop Shop (OSS) to cover more B2C supplies — including certain movements of own goods and a wider range of cross-border sales — many businesses will be able to manage their EU VAT obligations through a single registration rather than registering in each country where they trade.

4. The phased timeline

ViDA is being implemented in stages between 2025 and 2030:

• 2025: entry into force, with early measures and member-state flexibility on domestic e-invoicing
• 2027: improvements to the OSS and platform rules begin to take shape
• 2028: major single-registration and platform-economy measures take effect
• 2030: mandatory digital reporting and e-invoicing for intra-EU transactions

5. Impact on businesses already using OSS/IOSS

If you already use the OSS or Import One-Stop Shop (IOSS), ViDA is largely good news: the scope of what you can handle through a single return expands, reducing the need for additional local registrations. However, you should review your current registrations, confirm which supplies move into OSS, and ensure your systems can produce the structured data the new reporting regime will require.

Conclusion

ViDA reshapes EU VAT around real-time digital reporting, platform accountability, and single registration. The milestones may run to 2028 and 2030, but the changes are deep enough that early preparation — mapping registrations, planning OSS use, and readying e-invoicing — will pay off. Businesses that start now will adapt smoothly; those that wait may face a costly scramble.