Our VAT specialists have prepared a portfolio on the proposal for the Council Directive concerning VAT in the digital age (ViDA) that highlights a series of significant changes in VAT regulations to be implemented progressively until 2035. Following the Directive’s approval, likely in 2025, member states will be able to require the mandatory issuance of electronic invoices for transactions carried out within their territory and allow their use without the recipient’s acceptance. A significant change is introduced from 1 January 2027, where platforms facilitating supplies of goods within the Community by non-EU suppliers to other taxable persons will be considered as the suppliers of the goods.
Moreover, the deemed supplier provisions are extended to digital platforms that facilitate the short-term accommodation rental and passenger transport services.
By 1 July 2030, the concept of an electronic invoice will be formally defined, which must comply with a European standard, although the use of other standards for specific transactions will be permitted. Additionally, Digital Reporting Requirements are introduced, which will require both suppliers and recipients to declare certain transactions electronically to the tax authorities in real time. These measures aim to modernise and adapt the common VAT System to the needs of the digital economy, simplifying processes and ensuring tax compliance in the transaction of community goods.
For more information about this update, you can contact Fernando Matesanz and Ana González, heads of our VAT Department.
