Introduction to VAT in the Digital Age (ViDA)

VAT in the Digital Age (ViDA) is set to change the way businesses collect VAT and invoice in the EU. Here’s everything you need to know about ViDA: what’s involved, how it will impact your business and what you can do to prepare.

VAT in the Digital Age (ViDA) is a set of regulations being brought into effect by the European Commission, aimed at updating the current VAT reporting system. 

In short, ViDA will enable tax authorities in EU countries to use technology that makes VAT reporting more efficient. This will help ensure that VAT is collected fairly for businesses that sell goods or services to customers in the EU, whether or not they are based in the EU.

The introduction of ViDA is driven by several key objectives:

ViDA will impact businesses that sell goods or services to customers in the EU, regardless of whether or not they are based in the EU themselves. This includes online sellers, marketplaces and platforms. 

There are several key implications for businesses that sell to customers in the EU:

Businesses will be required to include additional information on their invoices. This includes:

Businesses using online marketplaces or platforms will also need to ensure the correct VAT is charged and collected by the platform they use.

Businesses will need to review and possibly overhaul their current processes and systems to ensure compliance with ViDA. This might involve implementing new eInvoicing systems and updating internal workflows. 

Businesses that are considering the move to eInvoicing should ensure that they engage an eInvoicing provider such as Tickstar that can prepare them for ViDA compliance.

All businesses that sell goods or services to customers in the EU will need to comply with the new invoicing and VAT collection requirements. This includes online businesses that are based outside the European Union but sell to customers in EU countries. 

In December 2022, the European Commission published the VAT in the Digital Age (ViDA) proposal. At that time, the initial goal was to launch ViDA between 2024 and 2028.

The timelines for the ViDA rollout and mandatory requirements continue to evolve. It’s best to refer to the European Commission’s website for updates. 

Keep in mind that European eInvoicing mandates also continue to be introduced at a country level, so it’s important to stay up-to-date with these changes and prepare for compliance.

It’s a good idea to consider how your current invoicing and accounting systems will handle the new ViDA requirements and related invoicing mandates, so you can identify any gaps early.
At Tickstar, we support modern invoicing regulations and help businesses transition seamlessly to eInvoicing. If you’re keen to learn more about ViDA and how it may impact your business, get in touch with our team here.