Brief information: Agreement on ViDA

At the beginning of November, EU member states agreed on the "VAT in the Digital Age" (ViDA) reform package. The measures decided with regard to ViDA concern the following complexes of issues and have the potential to strongly reform the EU VAT system:

• E-Invoicing and Digital Reporting Requirement (DRR),
• Single VAT Registration (SVR),
• Measures in the platform economy.

The EU pursues various objectives with this, such as.

• Modernising VAT reporting obligations using digital tools to reduce bureaucracy and compliance burdens.
• Fewer cases in which additional registration abroad within the EU is necessary, as well as
• Creating a level playing field in relation to platform-based business models and improved tax collection by increasing the involvement of platforms in the EU VAT system as a "deemed supplier".

The measures mentioned, although they will need to be gradually transposed into national law in the coming years, will have far-reaching consequences for companies operating in the EU. Particularly for those that conduct cross-border transactions.

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