Netherlands Approves First Stage of EU ViDA Reform: New VAT Registration Rules from 2027

The Dutch Parliament has approved Bill 36 920, implementing the Single VAT Registration pillar of the EU's ViDA reform. Changes begin January 1, 2027, with broader One Stop Shop, cross-border inventory transfer, and reverse charge measures from July 1, 2028, affecting retailers and e-commerce businesses.

The Netherlands has reached an important legislative milestone in implementing the European Union's VAT in the Digital Age (ViDA) package.

Bill 36 920, formally titled Wet implementatie Richtlijn btw in het digitale tijdperk – enkele btw-registratie, was adopted by the Dutch House of Representatives on September 17, 2026, followed by approval by the Senate on October 6, 2026.

The legislation introduces the Single VAT Registration (SVR) pillar of ViDA, intended to reduce the number of EU countries in which businesses must maintain separate VAT registrations.

The Dutch government submitted the bill in March 2026 to amend the VAT Act 1968 (Wet op de omzetbelasting 1968) in accordance with EU Directive 2025/516.

The measures primarily concern the expansion of the One Stop Shop (OSS), cross-border transfers of business-owned goods, and the application of mandatory reverse charge rules.

Although both parliamentary chambers have approved the bill, royal assent and publication in the Dutch Bulletin of Acts and Decrees (Staatsblad) are still required before it enters into force.

Single VAT registration is one of the three principal components of the EU's ViDA reform.

Its purpose is to simplify VAT compliance for businesses conducting transactions in multiple EU Member States.

Currently, companies may need separate VAT registrations in several countries depending on their activities, stock movements, and customer transactions.

The existing OSS framework already allows qualifying businesses to declare and pay VAT on certain cross-border supplies through a single Member State.

Under the expanded SVR framework, additional transactions will become eligible for centralized VAT reporting.

This may particularly benefit international retailers and e-commerce businesses operating warehouses, distribution networks, and online stores across the EU.

However, the reform does not create one universal VAT registration covering every type of transaction. Certain activities will continue to require local registration.

The first measures concern an expansion of the Union OSS to certain energy supplies.

From January 1, 2027, qualifying supplies of gas, electricity, heating, and cooling to non-taxable customers in other EU member states will become eligible for OSS reporting.

Businesses may declare the VAT due in the country of consumption through their member state of identification.

This could eliminate the need for separate registrations in certain countries solely because of qualifying energy transactions.

Suppliers will still need to determine the correct place of supply and apply the appropriate national VAT rate.

The measure is particularly relevant to energy suppliers and businesses involved in cross-border energy services, rather than ordinary retail sales.

The most significant SVR changes are scheduled for July 1, 2028.

The expanded OSS will cover additional business-to-consumer transactions, including certain domestic supplies of goods made by businesses not established in the Member State where the transaction takes place.

The scope will also extend to additional B2C services and specific goods transactions, including qualifying installation and assembly supplies.

Certain B2B transactions facilitated through electronic platforms will also receive new treatment.

For international retailers, this may reduce the need to register separately for VAT in countries where they make qualifying sales without maintaining a local establishment.

However, most ordinary B2B transactions, certain special VAT schemes and some import transactions will remain outside the expanded OSS.

Businesses will therefore need to review their transaction types individually before cancelling existing registrations.

Another important development concerns retailers transferring inventory between their own locations in different EU countries.

Under the current framework, moving company-owned stock between Member States may create additional VAT reporting and registration obligations.

The reform introduces a special OSS arrangement covering qualifying transfers of own goods.

This may allow eligible businesses to report such movements through a centralized scheme rather than maintaining separate VAT registrations solely for those transfers.

The new arrangement will be introduced from July 1, 2028.

At the same time, the existing call-off stock simplification will be gradually discontinued, with transitional arrangements extending into 2029.

For retailers operating cross-border warehouses and distribution centers, the changes could affect inventory accounting, stock-transfer documentation, and VAT registration strategies.

From July 1, 2028, the SVR reform will also expand mandatory reverse charge provisions.

Under specified circumstances, when a supplier is not established and VAT-registered in the Member State where tax is due, the responsibility for accounting for VAT will shift to the business customer identified for VAT purposes in that country.

This mechanism is intended to reduce the need for foreign suppliers to maintain additional VAT registrations.

For retailers and wholesale businesses, the change may affect the VAT treatment of qualifying B2B transactions involving suppliers established in other EU countries.

Businesses must determine whether the conditions for applying reverse charge treatment are satisfied and ensure that their invoicing and ERP systems reflect the correct tax liability.

Bill 36 920 does not introduce mandatory e-invoicing or digital transaction reporting. These requirements are being addressed through separate legislation.

On September 11, 2026, the Dutch government announced its intention to introduce mandatory B2B e-invoicing for domestic and cross-border transactions from July 1, 2030.

Cross-border digital transaction reporting is also scheduled for July 1, 2030, while domestic B2B digital reporting is planned from July 1, 2031.

The government expects to submit a separate legislative proposal before summer 2027.

The SVR changes are particularly important for international retailers, e-commerce platforms, and businesses transferring inventory between EU member states.

The expanded OSS may reduce administrative costs by allowing qualifying transactions to be reported through a single VAT registration.

However, businesses must still evaluate local registration requirements, particularly where transactions fall outside OSS or where local input VAT recovery is necessary.

POS and ERP providers may need to support new transaction classifications, cross-border inventory reporting, and reverse charge arrangements.

How will these changes impact the retail sector?

Retailers operating across EU countries may benefit from fewer VAT registrations and simplified reporting of qualifying cross-border sales and inventory transfers. Businesses should review their OSS eligibility, VAT registrations, stock movements, and ERP configurations while separately preparing for the planned e-invoicing and digital reporting requirements.

Here you can find the timeline and official documents for ViDA - Source

Ljubica Blagojević, Junior Legal Research Specialist at Fiscal Solutions

Linkedin profile