VAT in the Digital Age (ViDA)
ViDA is the EU reform package that modernises VAT around three major pillars.
Definition
VAT in the Digital Age (ViDA) is a set of EU legislative measures designed to modernise the VAT system and make it more resistant to fraud.
It was developed by the European Commission to adapt VAT to digital and cross-border business models.
The three pillars
ViDA is organised around three complementary pillars:
- Digital reporting and e-invoicing (Digital Reporting Requirements) for cross-border B2B transactions.
- Platform economy: new VAT rules for short-term accommodation and passenger transport platforms.
- Single VAT registration to reduce the need for multiple VAT registrations across the EU.
Good to know
ViDA introduces a phased rollout over several years, each pillar having its own timeline; the cross-border digital reporting strand is expected around 2030.
The reform favours a decentralised exchange model and the EN 16931 standard, rather than a single central platform imposed on all Member States.