The Council of the European Union has released a new proposal for the tax reform package called VAT in the Digital Age (ViDA). The proposal modernizes and streamlines VAT systems across the EU, notably the approach to e-invoicing and Continuous Transaction Controls (CTC) in the region. The updated proposal text will be reviewed by Members States on 5 November at the upcoming ECOFIN meeting.
If approved, a series of changes will take place over time, some of which will take effect as soon as the Directive enters into force.
The main change in the new ViDA proposal concerns the dates when measures become effective. Deadlines have been postponed as a result of the setbacks ViDA has faced since its initial draft.
The first change which will be effective with once ViDA is approved is the removal of EU approval for domestic e-invoicing, meaning that Member States may impose domestic e-invoicing without needing EU approval, provided it applies only to established taxpayers. Additionally, Member States that have introduced mandatory domestic e-invoicing will no longer require buyer consent for the issuance of e-invoices. Read more about what to expect under the current ViDA proposal in our latest blog.
Although ViDA adoption has been a lengthy process and is still pending final approval, its implementation promises significant benefits in public and private sectors across the EU.
