The draft VAT in the Digital Age" (ViDA) Directive should have been adopted on November 16, 2022, but unfortunately the adoption was rescheduled for December 7, 2022. More details on what it brings are as follows.

Fiscal subject related

General information

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While for more specific information we would need the adoption of the text of ViDA, there are some insights it could bring:

  • Digital Reporting Requirements (DRR)—Introduction of an EU digital reporting. At the moment, Member States (MS) are free to implement reporting systems, without any guidance. It leads to a wide range of domestic DRR, further leading to fragmentation across the EU, translating into a significant burden for businesses and inefficiency in cross-border controls. At this moment, the EU prohibits MS from applying mandatory e-invoicing, thus locking in sub-optimal systems. Regarding this, it is necessary to point out that just a few days ago, Germany raised a question regarding this matter and asked permission to introduce mandatory e-invoicing in Germany.
  • Platforms: an option to include a deemed supplier provision in transportation and accommodation.
  • SVR (single VAT registration) eliminates the need for VAT registration in another MS.After the VAT e-commerce package, transactions remain where a business must register in multiple states, which is costly. The idea is to fix this by improving current VAT e-commerce rules. This would be done on existing systems, where minimum costs are to be expected.

Reporting data is the main point of Vida. Therefore, it was necessary to identify the data element that must be provided electronically to the Tax Authority (TA). That set of data is to be facilitated with obligatory e-invoicing by the usage of the EU standard for e-invoicing and transmitting information to TA. MS may allow traders to use other data formats for the transmission of this data insofar as they ensure interoperability with the European Standard on electronic invoicing (Directive 2014/55/EU on electronic invoicing in public procurement on April 16, 2014). This Directive calls for the definition of a common European standard on electronic invoicing (EN 16931) at the semantic level, and additional standardization deliverables that will enhance interoperability at the syntax level.

Nevertheless, the details of the EU proposal are still to be confirmed.