The European Union has officially adopted the VAT in the Digital Age (ViDA) package—a major reform that will modernise the VAT system across the EU. This legislative update introduces far-reaching changes aimed at reducing VAT fraud, streamlining compliance, and adapting the tax system to today’s fast-moving digital economy.
But what does this mean for your business? Whether you operate a digital platform, engage in cross-border trade, or provide B2B services within the EU, understanding the implications of ViDA and preparing for its phased implementation is essential.
What is ViDA and why is it necessary?
The current EU VAT system was designed for a different time—when businesses dealt mainly in physical goods and operated within national borders. Today, the rise of online platforms, cross-border e-commerce, and real-time supply chains makes the existing system feel increasingly outdated.
ViDA aims to:
- Reduce the €93 billion annual VAT gap
- Simplify VAT compliance, especially for SMEs
- Support real-time reporting and digital invoicing
- Ensure fair treatment for both traditional and digital business models
At Bol International, we see how these challenges play out in practice—whether it's a platform unsure of its VAT obligations or an online retailer managing multiple registrations. This reform brings both clarity and opportunity, especially if you start preparing early.
Key ViDA changes that may impact your business
Digital reporting and e-invoicing
Businesses involved in intra-EU B2B transactions will be required to implement structured electronic invoicing and digital reporting. These new requirements aim to create a consistent standard across member states and give tax authorities better tools to detect irregularities and reduce administrative burdens.
Platform economy rules
If your business operates via digital platforms—such as marketplaces, ride-hailing services, or short-term accommodation providers—ViDA may shift the VAT responsibility from sellers to the platform itself. In specific situations, platforms will be considered the supplier for VAT purposes, meaning they must charge and remit VAT on behalf of the underlying supplier.
This shift could significantly affect pricing, contracts, and the way your compliance processes are structured. It’s something we at Bol International are already advising clients on.
A single VAT registration across the EU
Under the current system, businesses often need to register for VAT in each EU country where they operate. ViDA simplifies this by expanding the One Stop Shop (OSS) and Import OSS schemes. These allow businesses to handle cross-border VAT obligations through a single registration—saving time, cost, and administrative hassle.
If you're active in multiple countries, this could be a major efficiency gain.
When will ViDA come into effect?
ViDA will roll out gradually. Here’s what to expect:
- 20 days after publication of the Directive (expected mid-2025): EU Member States may begin requiring electronic invoices for domestic transactions. So far, the Netherlands has no concrete proposals to introduce electronic invoicing for domestic transactions.
- 1 July 2028: New reporting obligations will apply for the extended reverse charge mechanism. The OSS will expand to cover additional transaction types, such as supplies without transport, installation supplies, and intra-EU transfers of own goods.
- Between 1 July 2028 and 1 January 2030: The updated VAT rules for digital platforms will come into force. Platforms offering short-term accommodation (up to 30 nights) or transport services may become VAT liable as deemed suppliers.
- 1 July 2030: Intra-EU e-invoicing and digital reporting will become mandatory, marking a key step towards harmonised reporting across the EU.
How should your business prepare for ViDA?
Start by reviewing your invoicing processes, reporting obligations, and VAT registrations. Electronic invoicing will likely require both technical upgrades and new workflows. If you operate via a platform, it’s important to evaluate your VAT responsibilities under ViDA.
Even if your business isn’t immediately affected, ViDA’s expanded OSS could be a strategic advantage—especially for digital service providers or online retailers looking to simplify compliance across borders.
At Bol International, we’re already working with clients to assess their readiness. From tailored impact analyses to practical implementation support, we help businesses transition smoothly—so you’re not just compliant, but also well-positioned for growth.
Need help navigating the changes?
ViDA represents the most significant VAT reform in more than 30 years. And while its goals—greater transparency, digital alignment, and simpler compliance—are clear, the path to implementation can be complex.
At Bol International, we don’t just provide VAT advice—we become your partner in navigating these changes. Whether you need a full compliance check, support with OSS registration, or help integrating e-invoicing tools, our VAT specialists are here to help.
Would you like to discuss what ViDA means for your organisation?
Get in touch with our VAT team or visit VAT advisory services and VAT representation in the Netherlands | Bol Adviseurs
