EU unveils implementation strategy for VAT in the Digital Age package

The European Commission has published its implementation strategy for the VAT in the Digital Age (ViDA) package, setting out actions to help businesses and Member States with the practical roll-out of upcoming VAT framework updates.

The ViDA package introduces new digital reporting requirements, targeted VAT adaptations for the platform economy, and a streamlined single VAT registration process, aiming to simplify compliance and reduce administrative burdens. The strategy provides a roadmap with key action points and timelines to ensure coordinated implementation across the EU.

By aligning ViDA measures with broader EU digital policies, the Commission seeks to enhance transparency in digital transactions and support businesses operating across borders, European Commission said in a release.

The approach also emphasises close monitoring of ViDA’s integration with other legislative efforts to maximise efficiency and strengthen the Single Market.

The Commission estimates that the ViDA package could generate economic benefits of €172– 214 billion (~$201.6–$250.9 billion) over ten years, including around €51 billion (~$59.8 billion) in savings for businesses. The strategy underscores the EU’s commitment to modernising its VAT system to meet the demands of the digital economy while boosting competitiveness.

ALCHEMPro News Desk (HU)