The European Parliament has approved the VAT in the Digital Age (ViDA) proposal, bringing it one step closer to official adoption. The proposal will now head to the Council of the EU for final approval, marking a key step in the effort to modernize VAT systems throughout the European Union.
ViDA is a tax reform initiative introduced by the European Commission aimed at simplifying VAT processes, with a particular emphasis on e-invoicing and Continuous Transaction Controls (CTC). Once adopted, it will roll out a series of changes over time, with some measures set to take effect as soon as the Directive is enacted.
One of the first changes to be implemented upon approval is the elimination of the need for EU authorization for domestic e-invoicing. This allows Member States to implement domestic e-invoicing without needing prior consent from the EU. Furthermore, in countries where mandatory domestic e-invoicing is established, buyer consent will no longer be required for issuing e-invoices.
While ViDA has undergone a lengthy approval process and still awaits the final decision from the EU Council, its implementation promises significant benefits for businesses and governments across the EU.
For more details on what to anticipate under the current ViDA proposal, check out our latest blog.
