Single VAT Registration

On 5 November, the Economic and Financial Affairs Council (ECOFIN) reached a consensus on the “VAT in the Digital Age” (ViDA) proposals, which establish timelines for VAT reforms throughout the EU. Estonia, initially opposed, removed its veto on the “deemed supplier” model that mandates VAT compliance for ride-sharing and short-term accommodation platforms. The launch of this model has now been postponed to January 2030, though platforms can opt to implement it voluntarily starting in July 2028. This delay also extends to the Single VAT Registration (Pillar 3) reform, which is now scheduled for July 2028.

The ViDA package now returns to the EU Parliament for re-approval, primarily a procedural step. Once the Council accepts ViDA, expected in early 2025, Member States can implement e-invoicing requirements domestically without needing EU derogation approval. From then, businesses must be prepared to handle e-invoices for domestic transactions.

Additionally, key adjustments have been made to the VAT e-commerce package. Originally planned for January 2026, modifications such as new thresholds for B2C sales and tax point rules will now take effect in January 2027. For non-EU merchants, OSS registrations will be based on the country of goods dispatch. The Digital Reporting Requirement (DRR) and e-invoicing requirements under Pillar 1 will start in July 2030.

Member States will manage their reporting protocols but within an EU-wide framework, while a new centralised VIES database will bolster transparency and combat VAT fraud. Full harmonisation of domestic e-invoicing is now set for January 2035. The ViDA reforms underscore the EU's ongoing effort to modernise VAT systems, although the extended timelines reflect Member States’ varied implementation capacities.

See also: https://taxation-customs.ec.europa.eu/taxation/vat/vat-digital-age-vida_en