VAT Newsflash

Entry into force of ViDA package

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By:
Frank Heykes
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On March 11, 2025, The Council of the European Union officially adopted the VAT in the Digital Age (ViDA) Package!
Contents

This package will bring significant changes to the way VAT is applied in the EU. 

Multiple series of innovations will be progressively introduced with fluent timelines:

  • Immediate on entry into force of ViDA package :
    • Ability of Member States to introduce mandatory e-invoicing under specific conditions with a possible impact on businesses in Member States introducing e-invoicing
    • Improvements to the Import One-Stop-Shop (IOSS) framework for improved controls
  • With effect from 1st January 2027
    • Some slight legislative clarifications and alignments impacting those using the One-Stop Shop schemes (OSS and IOSS)
  • With effect from 1st July 2028 
    • Deemed supplier measure for platforms facilitating the supply of short-term accommodation rental and passenger transport services, this is nevertheless an option for which the implementation can be delayed until 1 January 2030. 
    • Single VAT registration main elements come into effect :
    • Extension of the OSS schemes including set of improvements to the processes involving IT investments and new transfer of own goods scheme
    • Mandatory reverse charge for non-identified suppliers
  • With effect from 1st July 2030
    • Digital Reporting Requirements measures coming into effect – the principal is on businesses making cross border B2B supplies.
  • By 1st July 2035
    • Those Members States who had a domestic digital real-time transaction-based reporting obligation before 1st January 2024 shall align their systems with the EU system
       

We understand that new processes may significantly impact the administrative processes of your business. However, we are happy to assist you and provide help and guidance on your way to implementation of such new rules. We believe that together, we can master this challenge. 

 

How we can help

The VAT team of Grant Thornton Luxembourg remains at your disposal for any help or further clarification. Do not hesitate to contact Frank Heykes.