VAT in the Digital Age (ViDA)

Shaping the future of e-invoicing and digital reporting in the EU.  

ViDA (VAT in the Digital Age) was created by the European Commission to modernise how Value Added Tax is reported, collected, and enforced across the EU. A key element of this reform is the shift towards real-time digital reporting and mandatory e-invoicing, which fundamentally changes the way transaction data flows between businesses and tax authorities. 

Get ready for VAT in the Digital Age (ViDA)

Shaping the future of e-invoicing in the EU.

The ViDA initiative is transforming VAT for the digital age, making structured
e-invoicing and real-time reporting the new standard.  Our solution helps you stay compliant, simplify cross-border trade, and streamline your VAT processes with confidence.

What is VAT in the Digital Age (ViDA)?

VAT in the Digital Age (ViDA) is a major EU initiative aimed at modernising VAT rules to better align with the digital economy. Introduced by the European Commission, as a three-part legislative package on 8 December 2022.  

With a phased rollout starting in 2027 and full implementation expected by 2030, ViDA introduces a shift towards digital reporting and structured e-invoicing as the standard across the EU. This transformation supports more consistent VAT processes and facilitates cross-border trade within a harmonised  framework.  

A key element of ViDA is the evolving definition of e-invoicing. Only structured electronic invoices, exchanged directly between systems via secure and standardised  networks, will be recognised. This marks a clear move away from unstructured formats such as PDFs.  

In addition, electronic reporting becomes mandatory, requiring businesses to submit transaction data to tax authorities in a more timely and structured manner. This leads to a transition from periodic reporting towards a model based on continuous data exchange.  

Frameworks such as Peppol support this development by enabling secure, interoperable communication between businesses and public authorities across borders.  

Together, these changes contribute to a more consistent, transparent, and integrated VAT environment within the European Union, aligned with the demands of an increasingly digital economy.

What are the key features of ViDA?

Real-Time Digital Reporting & e-invoicing
ViDA introduces mandatory e-invoicing. This aims to reduce VAT fraud (especially carousel fraud) and lower compliance costs for businesses.

Single VAT Registration Across the EU
Businesses will be able to full VAT obligations in multiple EU countries through a single online portal.

Platform Economy Regulation
Digital platforms (e.g. for transport and accommodation) will be responsible for collecting and remitting VAT when their users do not, ensuring fair competition and simplifying compliance.

Support for National Digital Reporting Systems
ViDA provides a harmonised framework that allows Member States to implement or expand domestic digital reporting systems, with the goal of future EU-wide convergence.

Mandatory Use of EN16931 Standard
The European semantic standard for e-invoicing (EN16931) will become mandatory, ensuring interoperability and consistency across Member States.

Modernisation of VIES
A new version of the VAT Information Exchange System (VIES) is being developed to improve VAT number validation and reporting of intra-community transactions, expected by 2030.

What are the key features of ViDA?

Real-Time Digital Reporting & e-invoicing
ViDA introduces mandatory e-invoicing. This aims to reduce VAT fraud (especially carousel fraud) and lower compliance costs for businesses.

Single VAT Registration Across the EU
Businesses will be able to full VAT obligations in multiple EU countries through a single online portal.

Platform Economy Regulation
Digital platforms (e.g. for transport and accommodation) will be responsible for collecting and remitting VAT when their users do not, ensuring fair competition and simplifying compliance.

Support for National Digital Reporting Systems
ViDA provides a harmonised framework that allows Member States to implement or expand domestic digital reporting systems, with the goal of future EU-wide convergence.

Mandatory Use of EN16931 Standard
The European semantic standard for e-invoicing (EN16931) will become mandatory, ensuring interoperability and consistency across Member States.

Modernisation of VIES
A new version of the VAT Information Exchange System (VIES) is being developed to improve VAT number validation and reporting of intra-community transactions, expected by 2030.

What are the key dates of ViDA?

January 1st 2026
New content obligations come into force. These include standardised elds such as IBAN, due date, and a clear reference if the invoice is part of a cash accounting scheme. Affected companies must update their invoice templates and ERP systems accordingly.
July 1st 2027
Additional refinements apply. VAT identification numbers must be used and validated more consistently across invoices and reporting. This means ensuring that the VAT ID on the invoice corresponds to an active, correct number for intra-EU trade. 
July 1st 2030
This is the critical cutover date. All B2B intra community transactions must use structured e-invoices (compliant with EN16931), and DRR becomes mandatory. The format must be machine-readable and follow technical specifications aligned with Peppol BIS or UBL.
April 5th 2025
Member States are permitted to introduce domestic e-invoicing mandates without prior EU approval. This accelerates national adoption, allowing countries like France, Italy, and Poland to press ahead with reforms.
January 1st 2035

This is the final harmonisation deadline. Several countries already have national e-invoicing or DRR systems in place. These must be aligned with ViDA’s model by January 1st, 2035.

April 5th 2025
Member States are permitted to introduce domestic e-invoicing mandates without prior EU approval. This accelerates national adoption, allowing countries like France, Italy, and Poland to press ahead with reforms.
January 1st 2026
New content obligations come into force. These include standardised elds such as IBAN, due date, and a clear reference if the invoice is part of a cash accounting scheme. Affected companies must update their invoice templates and ERP systems accordingly.
July 1st 2027
Additional refinements apply. VAT identification numbers must be used and validated more consistently across invoices and reporting. This means ensuring that the VAT ID on the invoice corresponds to an active, correct number for intra-EU trade. 
July 1st 2030
This is the critical cutover date. All B2B intra community transactions must use structured e-invoices (compliant with EN16931), and DRR becomes mandatory. The format must be machine-readable and follow technical specifications aligned with Peppol BIS or UBL.
January 1st 2035
This is the final harmonisation deadline. Several countries already have national e-invoicing or DRR systems in place. These must be aligned with ViDA’s model by January 1st, 2035.
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