What are the changes?

The ViDA initiative is aimed at three subjects: (1) digital reporting obligations (2) the VAT treatment of the platform economy and (3) the single VAT registration.

For whom is this relevant?

The ViDA initiative fits-in the broader VAT trend of more digital and real-time reporting obligations, enabling businesses to cut compliance costs by minimising VAT registration requirements and concentrating VAT liabilities around digital intermediary platforms. Given the broad scope of the proposed changes, the ViDA initiative will impact all businesses, especially those involved in international trade and the broader platform economy.

Next steps

Please note that the ViDA initiative is a legislative proposal that still has to be adopted by the EU Council. We will keep you updated on important developments. On 7 March 2023 we hosted a webinar on this topic. In the meantime, our VAT specialists are happy to discuss any question you may have about the impact of the ViDA initiative on your tax position.