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ViDA, what is it?
The ViDA VAT reform is the largest modernisation of European VAT since the transitional regime was introduced in 1993. It aims to adapt VAT to the digital economy and cut fraud, while easing the obligations of businesses active in several Member States.
What does "VAT in the Digital Age" mean?
ViDA is the acronym for VAT in the Digital Age. The term refers to a legislative package made up of three texts, not a single stand-alone directive. In practice, ViDA digitalises three moments in the life of VAT: the invoice, the return and the registration.
Why this reform?
The European Union loses tens of billions of euros in VAT revenue every year, a shortfall known as the "VAT gap". A large share of this gap comes from cross-border fraud and from the difficulty tax authorities face in cross-checking data in real time. ViDA tackles this problem by imposing digital reporting and structured invoicing, which make transactions traceable almost instantly.
The second objective is simplification. Today, a business that stores and sells in five countries often has to hold five VAT numbers. ViDA extends the One-Stop Shop and generalises the reverse charge to reduce these multiple registrations.
The legal framework
ViDA was adopted on 11 March 2025 by the Council of the European Union (ECOFIN configuration), unanimously by the Member States. The package was published in the Official Journal of the EU on 25 March 2025 and entered into force on 14 April 2025. It is made up of three instruments: Directive (EU) 2025/516, which amends VAT Directive 2006/112/EC (the substantive text), Regulation (EU) 2025/517 on administrative cooperation, and Implementing Regulation (EU) 2025/518, which sets the technical arrangements. Only the directive has to be transposed by each Member State. The two regulations apply directly.
The ViDA timeline: the key dates (2025-2035)
The ViDA rollout is phased over ten years. Here is the full timeline, with the measure attached to each milestone.
| Date | What changes | Pillar |
|---|---|---|
| 14 April 2025 | Entry into force. Member States may impose domestic e-invoicing without prior authorisation from Brussels | Invoicing |
| 1 January 2027 | The One-Stop Shop (OSS) is extended to B2C supplies of gas, electricity, heating and cooling | Single registration |
| 1 July 2028 | Extended One-Stop Shop, transfer of own goods regime, mandatory reverse charge (Article 194), end of new call-off stock arrangements | Single registration |
| 30 June 2029 | Complete phase-out of the call-off stock regime | Single registration |
| 1 January 2030 | The "deemed supplier" role becomes mandatory for short-term accommodation and passenger transport platforms | Platforms |
| 1 July 2030 | Structured e-invoicing and real-time digital reporting become mandatory for cross-border B2B between Member States | Invoicing |
| 1 January 2035 | Pre-existing national invoicing systems converge towards the European standard | Invoicing |
Pillar 1: electronic invoicing and real-time reporting (2030)
From 1 July 2030, structured electronic invoicing becomes mandatory for B2B transactions between Member States, and the data from each transaction is transmitted to tax authorities in real time.
The electronic invoice in the EN 16931 format
Paper invoices and plain PDFs are no longer enough for cross-border intra-EU transactions. The invoice must be issued in a structured electronic format compliant with the European standard EN 16931, the one that allows software and tax authorities to read the data automatically. The buyer's prior agreement, currently required to send an electronic invoice, disappears for these transactions. The issuing deadline is set at 10 days after the chargeable event.
Digital reporting (Digital Reporting Requirements)
Alongside the invoice, a system of real-time digital reporting (Digital Reporting Requirements) replaces today's recapitulative statement. In concrete terms, the EC Sales List and the other intra-Community recapitulative statements disappear in favour of a transaction-by-transaction transmission, at the moment the invoice is issued. The buyer, for their part, has 5 days to report their transactions. This shift deserves a dedicated article, because it touches your tools and your processes: we detail it in our guide to intra-EU e-invoicing.
Pillar 2: digital platforms become liable
From 1 January 2030, short-term accommodation rental platforms and passenger transport platforms become liable for VAT in place of their providers, when those providers do not charge it.
This is the deemed supplier mechanism: the platform is treated as having received the service from the provider, then supplied it to the final customer, and it is the platform that collects and remits the VAT. The aim is to restore a level playing field with hotels and taxis, which are currently penalised against a multitude of small non-taxable hosts and drivers.
Only two sectors are concerned: short-term accommodation rental (up to 30 consecutive nights) and passenger transport by road. Member States may apply these rules early, from 1 July 2028, but they only become mandatory everywhere on 1 January 2030. A provider who supplies a valid VAT number and undertakes to charge the VAT themselves falls outside the mechanism.
Pillar 3: single VAT registration and the reverse charge (2028)
This is the most structuring pillar, and the first to take effect, on 1 July 2028. It combines three measures that, together, sharply reduce the need to register for VAT in several countries.
Extended One-Stop Shop and transfer of own goods
The One-Stop Shop (OSS) is extended to new B2C transactions carried out by a non-established seller: domestic supplies of goods, sales with installation or assembly, on-board sales and all supplies of services to private individuals. A new regime additionally covers the transfer of a business's own stock from one country to another: these movements are now declared through a monthly OSS return, instead of triggering a local registration.
As a corollary, the call-off stock regime comes to an end: no new arrangement from 30 June 2028, complete phase-out on 30 June 2029. The new mechanism takes over, as we explain in our dedicated article on the transfer of own goods. If you are not yet using the One-Stop Shop, our tutorial on how to register for the OSS one-stop shop remains the starting point.
The Article 194 reverse charge becomes mandatory
A major change for B2B: the reverse charge under Article 194 becomes mandatory across all 27 Member States. Optional today and applied inconsistently, it will be systematic whenever a non-established supplier sells to a customer VAT-identified in the country concerned. In that case, it is the customer who accounts for the VAT under the reverse charge, and the supplier no longer needs to register locally for that transaction.
What ViDA changes in practice for your business
ViDA does not remove VAT abroad, it changes the way you manage it. For a non-established company, the 2028 question is no longer "in which countries should I register" but "do I still need to register".
Non-established business: fewer registrations, not zero
The combination of the mandatory reverse charge, the extended One-Stop Shop and the transfer of own goods regime will remove a large part of the "defensive" registrations that B2B sellers and e-commerce operators face today. A concrete example: Belgium, which today makes the reverse charge conditional on having a fiscal representative, will have to accept it for any customer holding a local VAT number.
Fiscal representation does not disappear for all that. It remains mandatory for businesses from third countries (outside the EU) in the States that require it, and necessary for all flows outside the One-Stop Shop: taxable local sales, recovery of input VAT, situations with a partial right to deduct.
E-commerce and Amazon FBA: watch out for local stock
For an e-commerce seller on Pan-EU FBA, the transfer of own goods regime is excellent news: moving your stock between Amazon warehouses in several countries will go through the One-Stop Shop, without a registration in each country of storage.
ViDA and the French e-invoicing reform
ViDA is a European reform, not to be confused with the French e-invoicing reform. The two coexist and pursue neighbouring logics, but their timelines and their scopes differ.
The French reform imposes e-invoicing and e-reporting on the domestic market, with generalised reception from September 2026 and a ramp-up of issuing through 2027. ViDA, for its part, applies to B2B between Member States from 2030. A foreign company active in France will therefore have to deal with both frameworks.
How to prepare for ViDA right now?
Waiting until 2028 would be a mistake, because some decisions have to be prepared upstream. Here is the roadmap I recommend to my clients.
- Map your flows by country and by type (B2B, B2C, stock transfers) to identify the registrations that will become unnecessary in 2028 and those that will remain mandatory.
- Audit your foreign VAT numbers: each number you keep may exclude you from the mandatory Article 194 reverse charge. This trade-off should be prepared as early as 2027.
- Prepare your invoicing tools for the EN 16931 standard and the structured format, targeting the 2030 deadline.
- Check your fiscal representation coverage, especially if you are established outside the EU or if you hold local stock.
Need support to anticipate the ViDA reform?
At Eurofiscalis, we help French and international companies map their flows, arbitrate their registrations and secure their VAT compliance at every ViDA milestone. Book a meeting with a specialist to prepare your roadmap.
FAQ
What is the ViDA directive?
ViDA (VAT in the Digital Age) is a European legislative package adopted on 11 March 2025, carried by Directive (EU) 2025/516. It modernises VAT around three pillars: electronic invoicing, taxation of digital platforms and single VAT registration, with a rollout from 2025 to 2035.
When does electronic invoicing become mandatory in the EU?
Structured electronic invoicing and real-time reporting become mandatory for B2B between Member States on 1 July 2030. National mandates, such as the French e-invoicing reform, come earlier and follow their own timelines.
What are the three pillars of ViDA?
The three pillars are: electronic invoicing and digital reporting (2030), taxation of rental and transport platforms through the deemed supplier (2028-2030), and single VAT registration with the mandatory Article 194 reverse charge (2028).
Does ViDA remove the fiscal representative requirement?
No. ViDA reduces the number of registrations thanks to the One-Stop Shop and the reverse charge, but fiscal representation remains mandatory for businesses outside the EU and for flows outside the One-Stop Shop. For France, a fiscal representative in France often remains necessary.
Does the reverse charge become mandatory with ViDA?
Yes, on 1 July 2028. The Article 194 reverse charge becomes mandatory across all 27 Member States when a non-established and non-identified supplier sells to a locally VAT-identified customer. The customer then accounts for the VAT under the reverse charge.
Is the OSS enough for an Amazon Pan-EU FBA seller?
Not always. The One-Stop Shop covers distance sales and the transfer of own goods, but not local B2C sales made from stock located in the customer's country. These sales may still require a local registration, as our guide to the Amazon OSS VAT return points out.
Will the recapitulative statements (EC Sales List) disappear?
Yes. On 1 July 2030, real-time digital reporting replaces the intra-Community recapitulative statements. The data is transmitted transaction by transaction, at the moment the invoice is issued, rather than periodically.
How should I prepare for the ViDA reform?
Start by mapping your flows and auditing your foreign VAT numbers before 2028, prepare your tools for the EN 16931 standard for 2030, and check your fiscal representation coverage. Specialist support secures these trade-offs.
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