With the "VAT in the Digital Age" (ViDA) package, the European Union has taken an important step toward modernizing VAT regulations. On Nov. 5, 2024, all 27 member states agreed to this proposal, which prepares businesses for an efficient and digital VAT compliance system. From July 2030, companies doing international transactions will be required to use e-invoicing, which will have a major impact on their administrative processes.
VAT in the Digital Age (ViDA) is a European Commission legislative proposal that modernizes VAT legislation to address challenges of the digital economy and ensure fair VAT collection. ViDA applies to all businesses selling goods or services in the European Union, regardless of their place of establishment.
The measures in this ViDA package ensure that the VAT world is in line with the digital world. We are very pleased with this compromise and hope that this package can enter into force soon.
ViDA brings changes to VAT processing that offer businesses the opportunity to streamline processes and reduce administrative burden. Some key points:
E-invoicing as standard: Electronic invoicing is becoming the standard for cross-border transactions, promoting cooperation and transparency. But it is expected that e-invoicing will become mandatory for domestic transactions as well. It will be of great importance to send the correct VAT codes along so that here too the declaration per invoice runs smoothly. Especially in situations such as reverse charge VAT.
Real time VAT declaration: Companies can declare their VAT more easily. In fact, this is done automatically with every invoice sent. A return per period would thus no longer be necessary.
Reduction of administrative burden: By properly implementing the obligations and thereby automating them further, this offers savings opportunities for companies. Invoicing processes and related purchasing and sales processes can be streamlined and the administrative burden can thus be reduced.
The exact details have yet to be worked out. But it is clear that ViDA will have a major impact on all companies. Implementing the mandatory components requires in-depth knowledge. NLeyes has the expertise to help you with this implementation.
From July 2030, businesses doing cross-border transactions will be required to use e-invoices and report data digitally. This will ensure uniform and efficient VAT compliance within the European Union and greater transparency between businesses and governments.
Does your organization want to be ready in time for the e-invoicing requirement? Get in touch with us! Our team of experts is ready to make your transition to the new standards smooth and successful. With NLeyes, you are prepared for the future of e-invoicing and VAT compliance.
Want to learn more about how NLeyes can support you? Contact us today with no obligation.
Erwin Wulterkens
