On Mar. 25, 2025, EU CNCL issued Dir 2025/516 of Mar. 11, 2025 amending Dir 2006/112/EC as regards VAT rules for the digital age (ViDA).
On same day, EU CNCL issued Regs on VAT administrative cooperation arrangements and information requirements for certain VAT schemes, see #245598 and #245601.
Member States may apply laws, regulations and administrative provisions re Article 1, points 2 and 3 from Apr. 14, 2025 and shall immediately inform the EC thereof.
Member States shall adopt and publish, by Dec. 31, 2026, the laws, regulations and administrative provisions necessary to comply with Article 2; they shall immediately inform the EC thereof and shall apply those measures from Jan. 1, 2027.
Member States shall adopt and publish, by Jun. 30, 2028, the laws, regulations and administrative provisions necessary to comply with Article 3; they shall immediately inform the EC thereof and shall apply those measures from Jul. 1, 2028.
By way of derogation from the second subparagraph of this paragraph, Member States shall apply the measures necessary to comply with Article 3, point (1), at the earliest from Jul. 1, 2028 and at the latest from Jan. 1, 2030.
Member States shall adopt and publish, by Jun. 30, 2029, the laws, regulations and administrative provisions necessary to comply with Article 4; they shall immediately inform the EC thereof and shall apply those measures from Jul. 1, 2029.
Member States shall adopt and publish, by Jun. 30, 2030, the laws, regulations and administrative provisions necessary to comply with Article 5; they shall immediately inform the EC thereof and apply those measures from Jul. 1, 2030.
Directive shall enter into force on the 20th day following publication, Apr. 14, 2025.
EP adopted resolution on the draft Council directive amending Directive 2006/112/EC re VAT rules for the digital age (15159/2024-C10-0170/2024-2022/0407(CNS)).
Follows EC Dec. 2022 proposed measures to modernize EU VAT system, see #155965.
Main Points
EP's plenary approved the changes to the rules that member states indicated in Nov. 2024 they wished to make to the VAT Directive; MEPs approved rules with 589 votes.
Changes will require that by 2030 online platforms must pay VAT for services provided by them in most of the cases where the individual service providers do not charge VAT.
Ending a market distortion because similar non-digital services are already subject to VAT, e.g. short-term accommodation rental and road passenger transport sectors.
However, the Member states will have the possibility of exempting SMEs from this rule.
Fully digitization of VAT reporting obligations for cross-border transactions by 2030 with businesses issuing e-invoices for cross-border business-to-business transactions.
Automatic reporting of data to the tax administration, to strengthen VAT fraud tackling.
Online VAT one-stop-shops so that even more businesses with cross-border activity will be able to meet their VAT obligations via a single online portal and in one language.
The updates to the VAT rules are part of the VAT in the digital age (ViDA) package.
Feb. 2025 Adoption Suggested
On Feb. 28, 2025, EU CNCL issued draft Dir amending Dir 2006/112/EC as regards VAT rules for the digital age; Permanent Representatives Committee suggested adoption.
Mar. 11, 2025 Adoption
On Mar. 11, 2025, EU CNCL, EU CMSN confirmed adoption of the VAT in the Digital Age (ViDA) package, which will be will be rolled out progressively until January 2035.
When in force, MSs will be able to introduce mandatory e-invoicing under conditions, and improvements will be made to the Import One-Stop-Shop (IOSS) framework.
Effective Jan. 1, 2027, minor clarifications will impact users of the One-Stop Shop (OSS) and IOSS schemes; from Jul. 1, 2028, platforms in short-term accommodation rental and passenger transport must comply with new deemed supplier measures, while the Single VAT Registration reforms and mandatory reverse charge for non-identified suppliers will start.
Digital Reporting Requirements will affect cross-border B2B transactions from Jul. 1, 2030; by Jan. 1, 2035, Member States with a domestic digital real-time transaction reporting obligation must align their systems with the EU standards, marking the final phase of this comprehensive ViDA package.
Mar. 25, 2025 Directive in the Official Journal
On Mar. 25, 2025, EU CNCL issued Dir 2025/516 of Mar. 11, 2025 amending Dir 2006/112/EC as regards VAT rules for the digital age (ViDA).
On same day, EU CNCL issued Regs on VAT administrative cooperation arrangements and information requirements for certain VAT schemes, see #245598 and #245601.
Member States may apply laws, regulations and administrative provisions re Article 1, points 2 and 3 from Apr. 14, 2025 and shall immediately inform the EC thereof.
Member States shall adopt and publish, by Dec. 31, 2026, the laws, regulations and administrative provisions necessary to comply with Article 2; they shall immediately inform the EC thereof and shall apply those measures from Jan. 1, 2027.
Member States shall adopt and publish, by Jun. 30, 2028, the laws, regulations and administrative provisions necessary to comply with Article 3; they shall immediately inform the EC thereof and shall apply those measures from Jul. 1, 2028.
By way of derogation from the second subparagraph of this paragraph, Member States shall apply the measures necessary to comply with Article 3, point (1), at the earliest from Jul. 1, 2028 and at the latest from Jan. 1, 2030.
Member States shall adopt and publish, by Jun. 30, 2029, the laws, regulations and administrative provisions necessary to comply with Article 4; they shall immediately inform the EC thereof and shall apply those measures from Jul. 1, 2029.
Member States shall adopt and publish, by Jun. 30, 2030, the laws, regulations and administrative provisions necessary to comply with Article 5; they shall immediately inform the EC thereof and apply those measures from Jul. 1, 2030.
Directive shall enter into force on the 20th day following publication, Apr. 14, 2025.
Regulators
EP; EU CMSN; EU CNCL
Entity Types
Auditor; CNSM; Corp
Reference
OJ L, 3/25/2025; Dir 2025/516, 3/11/2025; PR, 3/11/2025; Rp 15342/24, Rp 6304/25, 2/28/2025; PR 20250204IPR26688, Res P10_TA(2025)0012, 2/12/2025; 15159/2024-C10-0170/2024-2022/0407(CNS); Citation: Dir 2025/516; Dir 2006/112/EC;
