The Council of the European Union officials gave final approvals on the VAT in the Digital Age (ViDA) package, marking a critical step towards modernizing VAT systems across the EU. ViDA will be implemented in stages with different application dates from 2025 to 2035.

The bottom line: Over the next ten years VAT-related processes will become increasingly digital, making non-compliance easier to track and penalize. ViDA has three overarching goals: digitizing all cross-border B2B VAT reporting in the EU by 2030, requiring online platforms to pay VAT for short-term accommodations and passenger transport when providers don't, and expanding the VAT one-stop-shop system to eliminate multiple country registrations (i.e. single VAT registration).