VAT in the Digital Age (ViDA)

VAT in the Digital Age (ViDA): The Future of EU VAT Compliance

What is ViDA?

VAT in the Digital Age (ViDA) is an initiative by the European Commission aimed at modernizing the EU’s VAT system to meet the demands of the digital economy. Proposed as part of the EU’s broader tax digitization strategy, ViDA introduces new rules and technologies to improve VAT collection, reduce fraud, and simplify cross-border trade.

ViDA was first announced in December 2022 and is expected to be gradually implemented across 2025–2028.

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Why Is ViDA Important?

ViDA responds to several key challenges:

€93 billion VAT gap in the EU due to fraud and inefficient reporting.
Fragmented national systems causing administrative burdens.
The need for real-time digital reporting across member states.

By introducing harmonized digital requirements, ViDA aims to create a simpler, safer, and fairer VAT system.

Key Pillars of ViDA
1. Digital Reporting Requirements (DRR)

Mandatory near-real-time reporting of cross-border transactions via e-invoicing.

  • Replaces traditional VAT recapitulative statements.
  • Ensures interoperability between member states.
2. Platform Economy VAT Rules

New obligations for digital platforms facilitating short-term accommodation and passenger transport.

  • Platforms become deemed suppliers for VAT purposes.
  • Affects providers like Airbnb, Uber, and similar services.
3. Single VAT Registration in the EU

Expands the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) mechanisms.

  • Businesses can register for VAT only once in the EU.
  • Simplifies compliance for intra-EU B2C and B2B e-commerce.

     

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How Eaglessoft Helps You Prepare

At Eaglessoft, we are already enabling businesses to adapt to ViDA requirements:

  • E-Invoicing Portal: Compliant with EU DRR and national e-invoicing mandates.

  • Integration Framework: Connects ERP systems (incl. SAP) to ViDA-compliant infrastructures.

  • Tax Authority Connectivity: Seamless integration with national VAT platforms.

  • Qualified Signature Support: Ensures secure, signed and timestamped document exchange.

We support both SMEs and large enterprises in managing the transition to ViDA with scalable and future-proof solutions.

Contact

  • Velodroomstraat 182 2850 Belgium
  • +32 456735966
  • info@eaglessoft.com

Eaglessoft is a Belgium-based company connecting businesses, governments, and platforms through secure and compliant e-invoicing and integration solutions — globally.

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