ViDA Directive: What Businesses Can Expect in 2030
ViDA Directive: Unified Digital VAT Reporting Framework
The ViDA Directive (“VAT in the Digital Age”) marks a major decision by the EU to modernise the VAT system. With the official adoption on March 11, 2025, the EU Commission and Member States have paved the way for a mandatory digital reporting system for intra-EU B2B transactions. For businesses, this represents a significant shift in how invoices are issued and VAT is reported.
The ViDA Directive is a direct response to existing weaknesses in the current VAT system. Delays in information flow between businesses and tax authorities, along with national exceptions, make VAT fraud prevention difficult. ViDA aims to introduce a near real-time reporting system that improves transparency in cross-border transactions within the EU.
What exactly does the ViDA Directive include?
The adopted framework outlines the following measures:
- Introduction of a digital reporting system (Digital Reporting Requirements, DRR) for intra-EU B2B transactions
- Mandatory electronic invoicing as the basis for VAT reporting
- Standardisation of technical and legal specifications to ensure interoperability among Member States
- Gradual implementation with transition periods to give businesses and tax authorities enough time to adapt
What additional measures will be introduced?
- IOSS (Import One Stop Shop): Simplifies VAT handling for imports from non-EU countries
- OSS (One Stop Shop): Streamlines VAT reporting for intra-EU distance sales
- Single VAT Registration: Allows companies to register for VAT in one Member State for use across the EU
- Reverse Charge Mechanism: Shifts VAT payment responsibility from supplier to buyer to minimise fraud
- Platform Rules: Clarify VAT obligations for digital marketplaces
Timeline
Implementation will begin gradually from 2028. Businesses will be required to issue and report intra-EU B2B transactions electronically. The EU will provide a coordinated, standardised technical framework. As with previous digital initiatives, actual implementation will be the responsibility of individual Member States.
The Role of Peppol and EDI
Although the ViDA Directive does not prescribe a specific technical solution, the Peppol network is viewed in many countries as a potential infrastructure for electronic invoice exchange. Peppol is already well established in many B2G processes and meets key requirements: structured data, secure communication, and interoperability across participants.
Impact on Businesses
The ViDA Directive is another step toward digitising business invoicing and reporting. Especially companies engaged in cross-border trade within the EU should assess and upgrade their systems early. While ViDA introduces regulatory obligations, it also brings opportunities: more efficient processes, reduced manual errors, and improved data transparency.
Industry Perspective
For many companies—especially SMEs—the move to mandatory e-invoicing in B2B transactions will be a major shift. However, from a technical standpoint, it’s wise not to wait. Laying the foundation now is crucial. Scalable solutions such as b.edi or web.invoice can help businesses meet both national and EU-wide compliance requirements.
Kontakt: Jannik Stamm, Head of EDI
Telefon: +49 40 359641 259
Email: jstamm@besitec.com
