BDO Indirect Tax News

Following a consultation of the European Parliament, the VAT in the digital age package (ViDA package) was formally adopted on 11 March 2025, with legislative texts published in the EU official journal on 25 March (for prior coverage, see the tax alert dated 19 November 2024). The package—which becomes effective between 2025 and 2035—will bring significant changes to VAT in the EU

This article provides a brief summary of the upcoming changes and timelines.

Main Changes and Timeline 

• Upon entry into force: EU member states can require taxable persons established in their territory to issue e-invoices for supplies of goods and services other than cross-border supplies. 
• As from 1 January 2027: Preceding the extension of the One Stop Shop (OSS) in 2028, it will be possible to report B2C supplies of electricity, gas, heating and cooling through the OSS. This will accommodate the electric vehicle charging industry, in particular.  
• As from 1 July 2028:
  • Platforms will become responsible for the payment of VAT on short-term accommodation rentals and passenger transport by road in cases where the underlying supplier does not remit VAT. Member states can postpone this obligation until 1 January 2030 and can elect not to apply this provision if the underlying supplier uses the exemption for SMEs (small and medium-sized businesses). Platforms must also record (and provide data upon request) about transactions they facilitate in this sector in situations where they are not liable to remit the VAT on such transactions.  
  • A new place of supply rule will apply to B2C platform facilitation services, i.e., such services will be subject to VAT at the place where the underlying service is subject to VAT.  
  • The number of required VAT registrations of businesses within the EU will decrease because of the extension of the OSS regime, extension of the mandatory reverse charge and a special regime for the transfer of own goods.  
• As from 1 July 2030:  
  • E-invoicing (using an EU standard) and digital reporting obligations in cross-border transactions are introduced. In short, this concerns intra-Community supplies and acquisitions, supplies of goods and services on which VAT is reverse-charged and transfers of own goods. The supplier must issue an e-invoice and report the data to the local tax authorities within 10 days after the taxable event. The customer must also report data on the transaction to the local tax authorities within five days after receipt of the invoice. The sales listing or recapitulative statement will be abolished.
  • Member states can introduce digital reporting and e-invoicing obligations for domestic transactions, but this is not mandatory. If they do so, it should be possible to use the EU format. Member states that have a domestic real-time reporting system in place (or that have been authorised to introduce such a system by the European Commission) on 1 January 2024 have until January 2035 to adapt their system to the EU standard. 
• As from 1 January 2035: All member states must have adapted their domestic digital reporting system to the EU format.  

BDO Insight

As the EU member states have now adopted the ViDA package, they will need to implement the measures both on a national and an EU level by the relevant deadlines.

Hendy van Hoof
Madeleine Merkx
Marco Beerens
BDO in Netherlands