The ViDA project in Europe: modernizing VAT for the digital age
The ViDA — VAT in the Digital Age — is one of the most fundamental tax reforms in the European Union.
In response to the digitalization of trade, the growth of e-commerce, the development of digital platforms, and cross-border VAT fraud, the European Union aims to thoroughly modernize how VAT operates.
The objective is clear: to build a more harmonized, digital, and interoperable framework among member states.
This reform is part of a trend already underway in several European countries, particularly in France with the progressive rollout of e-invoicing and e-reporting starting September 1, 2026.
Like the French reform, ViDA pursues several objectives:
- combat VAT fraud;
- modernize reporting obligations;
- simplify business procedures;
- improve the visibility of economic transactions;
- automate tax controls;
- harmonize practices among member states.
For businesses, ViDA is not a distant or purely European issue. It is a reform that will progressively change VAT obligations, invoicing flows, reporting processes, and information systems.
What is ViDA?
ViDA stands for VAT in the Digital Age, or "VAT in the Digital Age".
The ViDA legislative package was proposed by the European Commission to modernize the European Union's VAT system and adapt it to new economic practices.
It is based on three main ambitions:
- modernizing VAT in the digital age;
- fighting fraud more effectively;
- reducing administrative complexity for businesses and tax authorities.
The ViDA package was adopted in 2025, and its implementation will be gradual until 2035.
ViDA does not impose a single technical system on all countries. Instead, it establishes a common framework that each Member State will need to adapt to its own fiscal and technical environment.
This means businesses will have to manage a dual reality: a harmonized European foundation, but also national arrangements that may vary by country.
Why is ViDA a major reform?
VAT is one of the main taxes within the European Union.
However, current rules remain complex, especially for businesses operating in multiple Member States.
Reporting obligations can vary significantly from one country to another, local VAT registrations are multiplying, controls are sometimes lengthy, and administrations lack visibility on certain cross-border transactions.
ViDA aims to address these limitations with a more digital, more automated, and more structured approach.
The reform aims to achieve:
- better traceability of transactions;
- faster fraud detection;
- reduced administrative costs;
- simplified cross-border obligations;
- better harmonization among European countries;
- progressive automation of VAT reporting.
For businesses, the challenge is therefore to prepare their systems for more structured, faster, and more controlled exchanges.
ViDA and the French e-invoicing reform
The French e-invoicing reform follows the same logic as ViDA.
From September 1, 2026, all VAT-registered businesses will be required to be able to receive e-invoices.
Large companies and mid-sized businesses will also be required to issue e-invoices by this date. SMEs, VSEs, and micro-businesses will be subject to the issuance requirement from September 1, 2027.
France is implementing a model based on Approved Platforms, formerly known as PDPs, and a Public Invoicing Portal refocused on the directory and data hub.
This model shares several principles with ViDA:
- use of structured data;
- data transmission to the administration;
- interoperability between platforms;
- automation of flows;
- improved traceability of transactions;
- standardization of formats;
- digitalization of tax obligations.
You can find our complete definition here: AP – Approved Platform.
The three pillars of ViDA
ViDA is based on three structuring pillars.
These three pillars do not apply to exactly the same businesses or deadlines, but they all contribute to the modernization of European VAT.
The three pillars are:
- digital reporting and e-invoicing requirements;
- new VAT rules for the platform economy;
- single VAT registration, or Single VAT Registration.
Pillar 1: E-invoicing and Digital Reporting
The first pillar concerns the e-invoicing and the Digital Reporting Requirements, often referred to as DRR.
As of July 1, 2030, cross-border B2B transactions within the European Union will be subject to new digital reporting obligations based on e-invoicing.
In practice, businesses will need to be able to transmit transaction data much faster and in a more structured way than today.
The objective is to gradually replace certain traditional reporting mechanisms with digital reporting closer to real-time.
This pillar is notably based on:
- the issuance of structured e-invoices;
- the use of common standards;
- the digital transmission of data;
- better harmonization of obligations among Member States;
- the automation of VAT controls;
- the reduction of cross-border fraud.
The European standard EN 16931 plays an important role in this approach, with structured formats like UBL or CII.
PEPPOL can also play a role in certain exchange ecosystems, even if ViDA does not mandate a single use of PEPPOL throughout the European Union.
For businesses, this pillar is the most significant operationally. It directly impacts ERPs, invoicing tools, compliance platforms, data flows, and financial processes.
Pillar 2: new VAT rules for the platform economy
The second pillar concerns the platform economy.
Digital platforms now play a major role in certain sectors: short-term rentals, passenger transport, on-demand services, marketplaces, and intermediation platforms.
ViDA gradually introduces enhanced responsibility for certain platforms.
In certain cases, platforms may be considered liable for VAT instead of the suppliers using their services, under the mechanism of the deemed supplier, or deemed taxable person.
This development aims to:
- combat the non-declaration of certain activities;
- restore fairer competition with traditional players;
- secure VAT collection;
- simplify obligations for certain small operators;
- improve the transparency of transactions carried out via platforms.
The main measures concerning the platform economy will gradually apply from July 1, 2028, with possibilities for deferral according to the planned arrangements.
For platforms, the impacts will be significant: they will need to adapt their systems for VAT collection, invoicing, reporting, and calculation.
Pillar 3: single VAT registration and simplification of obligations
The third pillar concerns the simplification of VAT registration obligations within the European Union.
Currently, businesses operating in multiple countries may be forced to undertake multiple local VAT registrations.
This generates costs, administrative complexity, and risks of non-compliance.
ViDA strengthens the logic of the one-stop shop, particularly with the OSS — One-Stop Shop — and the IOSS — Import One-Stop Shop.
The objective is to enable more businesses to fulfill their VAT obligations via a single portal in one Member State, rather than having to register locally in multiple countries.
This pillar aims to:
- reduce multiple VAT registrations;
- simplify cross-border declarations;
- facilitate intra-EU B2C operations;
- strengthen the IOSS for distance sales of imported goods;
- simplify certain transfers of goods within the European Union;
- reduce compliance costs.
The first changes will progressively come into effect from 2027 and 2028.
A progressive timeline until 2035
ViDA is not being rolled out all at once.
The reform follows a progressive timeline to allow Member States, tax administrations, and businesses time to adapt their systems.
The key deadlines to remember are as follows:
- April 14, 2025 : ViDA package comes into force;
- January 1, 2027 : initial clarifications and improvements related to the OSS and IOSS schemes;
- July 1, 2028 : implementation of several measures related to the platform economy and single VAT registration;
- July 1, 2030 : implementation of digital reporting obligations for cross-border B2B transactions, based on e-invoicing;
- January 1, 2035 : expected alignment of national real-time digital reporting systems with the European model.
This timeline may seem distant, but the IT and tax impacts are significant. Companies must anticipate now, especially if they operate in several European countries.
A European Reform with National Implementation
ViDA sets a common European framework, but its implementation will also depend on national choices.
Each Member State will have to adapt its laws, platforms, formats, reporting requirements, and control procedures.
For several years, companies will therefore have to manage a coexistence of national models.
These will notably include:
- clearance models;
- digital reporting models;
- certified or approved platforms;
- public portals;
- mandatory formats;
- real-time or near real-time transmission obligations;
- country-specific requirements.
For international groups, the challenge is therefore to have a multi-country strategy capable of absorbing local differences while maintaining a consistent architecture.
With DEMATRUST, ICD International supports companies with their challenges in electronic invoicing, tax compliance, and multi-country integration.
Examples of Reforms in Europe
Several European countries have already initiated or deployed national reforms concerning electronic invoicing and tax reporting.
Italy
Italy stands out as a pioneer in Europe.
Mandatory B2B electronic invoicing has been in place since 2019 via the national system Sistema di Interscambio, often referred to as SdI.
This model has allowed the Italian tax administration to gain better visibility into transactions and strengthen the fight against fraud.
For businesses, Italy illustrates the importance of anticipating IT impacts, formats, controls, statuses, and rejection procedures.
Belgium
Belgium is preparing for the generalization of domestic B2B electronic invoicing starting in 2026.
Its model relies heavily on interoperability and standards to streamline exchanges between businesses.
For groups operating in Belgium, it is important to anticipate local requirements, formats, and transmission methods.
[CTA: Discover our Belgium country guide]
Spain
Spain is also continuing the digitalization of its tax obligations.
The country already has an advanced VAT reporting system with SII and is gradually preparing for the extension of e-invoicing in B2B exchanges.
Companies operating in Spain must therefore monitor both existing reporting obligations and developments related to e-invoicing.
[CTA: Discover our Spain Country Guide]
France
France is implementing a progressive reform of e-invoicing and e-reporting.
The French model relies on accredited platforms and a PPF refocused on the directory and data hub.
Companies will need to be able to receive e-invoices starting September 1, 2026, and then issue them based on their size.
[CTA: Discover our France Country Guide]
How to prepare for ViDA in your company?
ViDA should be approached as a tax, digital, and operational transformation project.
Affected companies must prepare for several key initiatives.
1. Analyze your digital maturity
The first step is to assess your ability to produce, transmit, and utilize structured data.
This includes analyzing:
- the compatibility of your ERP systems;
- the quality of your customer and supplier data;
- your ability to manage UBL and CII formats;
- your API connections;
- your existing EDI flows;
- your ability to connect to tax platforms;
- your management of statuses and rejections;
- your ability to operate in multiple countries.
This analysis should identify the gaps between your current tools and future European obligations.
ICD International offers e-invoicing support to help you audit your flows and prepare your roadmap.
2. Adopt a comprehensive and international solution
VAT compliance will become increasingly digital and multi-country.
It is therefore essential to choose a solution capable of managing several obligations:
- e-invoicing;
- digital reporting;
- e-reporting;
- structured formats;
- ERP integrations;
- national requirements;
- multi-country compliance;
- archiving;
- traceability;
- status management;
- regulatory controls.
With DEMATRUST, ICD International assists companies in managing their e-invoicing obligations in France and internationally.
The solution enables integration of flows with ERPs, secures transmissions, manages expected formats, and supports regulatory changes.
3. Prioritize Scalability
National reforms will continue to evolve until 2035.
A solution that is too rigid can quickly become a hindrance.
Companies must therefore favor an architecture capable of evolving with:
- new formats;
- new reporting obligations;
- national requirements;
- local timelines;
- ViDA developments;
- status or reporting changes;
- new transmission channels.
Scalability must be a major criterion when choosing your e-invoicing platform.
4. Train Your Teams
The success of a ViDA project does not depend solely on technology.
Finance, tax, accounting, and IT teams will need to collaborate closely.
They will need to understand:
- new invoicing obligations;
- digital reporting requirements;
- structured formats;
- cross-border VAT rules;
- the roles of platforms;
- the impacts on ERPs;
- control and rejection procedures;
- national developments.
Training is therefore essential to prevent the reform from being solely borne by operational teams when it comes into effect.
The Role of DEMATRUST
DEMATRUST is ICD International's e-invoicing solution.
It supports companies with their challenges in compliance, automation, and management of invoicing flows.
DEMATRUST notably allows for the management of:
- the issuance of electronic invoices;
- the reception of supplier invoices;
- structured formats;
- integration with ERPs;
- compliance checks;
- e-reporting;
- traceability;
- archiving;
- lifecycle statuses;
- multi-country challenges.
ICD International also offers audit, configuration, support, and guidance services to help companies secure their transition.
[CTA: Download our international guides to anticipate ViDA country by country]
Key takeaways
ViDA is progressively redefining European VAT by building a more digital, harmonized, and secure ecosystem.
The reform is based on three pillars: e-invoicing and digital reporting, new VAT rules for the platform economy, and single VAT registration.
For businesses, ViDA represents both a regulatory constraint and an opportunity for modernization.
By anticipating now, you can ensure data reliability, adapt your ERPs, harmonize your processes, and reduce the complexity of your VAT compliance in Europe.
With DEMATRUST, ICD International supports companies in their e-invoicing and multi-country compliance projects.
Do you want to anticipate ViDA and prepare for your e-invoicing obligations in Europe? Discover DEMATRUST, consult our international guides, or contact our experts via the ICD International contact page.
