ViDA Rejected Again – Europe Misses Another Chance to Harmonize e-Invoicing

Anna Nordén
June 21, 2024

This blog was last updated on June 25, 2024

During the latest ECOFIN meeting on 21 June, Member States met to discuss if they could come to an agreement to implement the VAT in the Digital Age (ViDA) proposals. At the ECOFIN meeting in May, Estonia objected to the platform rules being proposed, instead requesting to make the new deemed supplier rules optional (an opt-in), allowing Member States to choose whether to implement them in their national VAT legislation or not.

In today’s meeting a new compromise text was proposed. The compromise text meant that there would be an opt in for the new deemed supplier rules but for SME businesses. Whilst 26 Member States and the commission came to an agreement on this, Estonia could not support the new compromise due to the fact there was no substantial changes since the last meeting and their objections remained. It will now be up to the Hungarian presidency to seek agreement on the proposals, during the second semester of 2024.

As a reminder of what will occur, and the intended dates of implementation please refer to our previous blog, What’s Happening Next with VAT in the Digital Age (ViDA).

Remind me, what is VAT in the Digital Age (ViDA)?

Simply put, ViDA is a proposal that will enable EU countries to use technology to improve the current VAT system and better prevent fraud. The updates include facilitation of e-invoicing, introduction of mandatory digital reporting requirements of cross-border transactions and legal mechanisms to facilitate cross-border business and compliance. When enacted, this will mean significant changes to how you operate in these countries.

As expected, changes of this size and scope are generating a lot of questions among businesses that conduct operations in the EU. Everything from process costs to technology needs is being evaluated as more information on ViDA becomes available.

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Author

Anna Nordén

As Principal, Regulatory Affairs at Sovos, Anna Nordén pursues government relations and other public affairs work to anticipate new regulatory trends and laws. In tight collaboration with colleagues in both Strategy and Regulatory Analysis and Design, her long practice and expertise are instrumental in guiding both Sovos and legislators as new tax control reforms are rolled out across the globe.
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