On November 5, 2024, the Economic and Financial Affairs Council (ECOFIN) reached a long-awaited agreement on the VAT reform package aimed at adapting EU tax regulations to the requirements of the digital age, known as the ViDA package (VAT in Digital Age). The new regulations introduce fundamental changes in three key areas: digital reporting, taxation of online platforms and simplification of cross-border settlements.

The new provisions will be implemented gradually. The timeline for the introduction of these new regulations (according to the draft published on October 30, 2024) is as follows:

  • July 2028 – Changes in VAT registration in line with the concept of Single VAT Registration
  • January 2030 – New obligations for digital platforms
  • July 2030 – Electronic reporting and e-invoicing (EU-wide harmonization starting in January 2035)

ViDA will now be forwarded to the EU Parliament for re-approval due to significant differences between the original proposal from the European Commission and the scope of changes adopted by ECOFIN. In the next step, the EU Parliament will pass the approved package of changes to the EU Council for implementation.

The ViDA package brings significant simplifications in cross-border settlements, which should facilitate business operations within the European market (as we discussed on our blog) [1]. We will cover the adopted solutions in more detail in an upcoming article – we invite you to follow our blog posts.

[1] https://crido.pl/en/blog-taxes/vat-in-digital-age-what-changes-vida-brings/