The European Commission's ambitious plan to modernize and digitalize the EU's value-added tax (VAT) system has been postponed by two years and possibly more after facing resistance from some member states and businesses.
The VAT in the Digital Age (ViDA) initiative, which was proposed in December 2022, aimed to introduce a series of measures to reduce VAT fraud, simplify VAT compliance, and promote innovation in the retail sector, including the implementation of e-invoicing.
Let's find out more about the postponed timeline.
Implementation of the ViDA directive faces delays
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Author: Kristina Dosen
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Content accuracy validation date:
02.11.2023
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08:43h
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However, the implementation of these measures, which was originally scheduled for 2024–2028, has been delayed by at least two years, following a vote by the European Parliament in October 2023. The vote was influenced by the concerns raised by some member states and businesses about the technical feasibility, legal certainty, and proportionality of the reforms. The new timeline pushes the final implementation of digital reporting through e-invoicing and e-reporting to 2030, or even 2032, pending additional approval from relevant EU bodies.