ViDA: The future of VAT in the digital age

What is ViDA?

After two years of negotiations with all EU Member States, the ViDA package was formally adopted on 11 March 2025 and published on 25 March 2025. It officially came into force on 14 April 2025 and will be implemented in phases.

The package includes three key pillars:

• Digital VAT reporting (e-invoicing)

• Preventing multiple VAT registrations across the EU

• New VAT rules for the platform economy

1. Digital VAT reporting (e-invoicing)

One of the most impactful reforms is the transition to an EU-wide e-invoicing and digital reporting standard for VAT. This will be rolled out in stages.

What will change?

• As of 14 April 2025, Member States may impose mandatory e-invoicing for domestic transactions without prior approval from the European Commission.

• As of 1 July 2030, e-invoicing becomes mandatory. For intra-EU supplies and for transfers of own goods and services for which VAT is reversed, the following applies:

  • Structured e-invoices must be issued within 10 days after the taxable event.

  • Certain invoice data must be immediately reported to the national VAT portal. The impact on current reporting obligations (like Intrastat) remains unclear.

  • The recipient will also have to report specific data within 5 days of receiving the e-invoice. Under certain conditions, Member States may exempt this requirement — Belgium’s position is yet to be determined.

• Monthly summary invoices remain allowed (under conditions) for transactions within the same calendar month.

• New invoice requirements include:

  • Mandatory invoice details for simplified ABC deliveries;

  • Mandatory inclusion of a bank account number for payment;

  • Mandatory reference to the original invoice in the case of a correction invoice.

  • As of 1 January 2027, special mentions will be required for transactions under the cash accounting scheme.

What does this mean for Belgium?

Several Member States already mandate e-invoicing for local transactions — Belgium included. From 1 January 2026, domestic transactions in Belgium will fall under mandatory e-invoicing.

These national systems may remain in place but must comply with ViDA standards by 1 July 2030.

Countries like Italy and Spain, which already operate e-invoicing regimes, have until 1 January 2035 to adapt. Full EU-wide harmonisation is expected by then.

What should you do?

The impact is significant, which is why a phased approach was chosen. Prepare early: review and adapt your invoicing systems and processes to ensure compliance and avoid last-minute disruptions.

2. Preventing multiple VAT registrations

The second ViDA pillar aims to reduce the administrative burden for e-commerce businesses. As of 1 July 2028, the need to register for VAT in multiple Member States will be minimised through an expansion of the One-Stop Shop (OSS).

Expansion of the One-Stop Shop (OSS)

Currently, OSS allows businesses to report and remit VAT on B2C cross-border sales via the tax authority in a single Member State.

• The OSS will be extended to all supplies of goods and services to consumers, including domestic transactions.

• For gas, electricity, heating and cooling, the expansion takes effect already on 1 January 2027.

New OSS for stock transfers

A new OSS scheme will be introduced for companies that transfer stock to other EU countries for later direct B2C sales.

• From 1 July 2028, these transfers can be reported via the OSS without triggering VAT registration in the destination country — provided the company has full VAT deduction rights.

• This change makes the call-off stock regime obsolete, and it will therefore be abolished.

Reverse charge mechanism

The reverse charge mechanism will be expanded for cross-border B2B transactions.

• Suppliers not established in the country of supply will no longer need to register for VAT if the customer is VAT-registered in that country.

• For certain transactions (e.g. local services, real estate), the reverse charge will become mandatory where previously optional — if the supplier is not VAT-registered but the customer is.

• Member States may also opt to apply the reverse charge even if the customer is not established in the country of supply.

Important to note

While these measures reduce the need for registration, some situations will still require multiple VAT numbers, such as intra-EU supplies from various countries.

Moreover, input VAT cannot yet be reclaimed via the OSS, which means refunds must still go through the separate VAT refund portal — a slower and less attractive route if you’re pre-financing significant VAT abroad.