On December 8, 2022, the European Commission proposed a package of measures to modernize the European value-added tax system, signaling a collective move toward a new, modern system. The goal of these efforts is to make the value-added tax system more fraud-resistant and more practical in many regulatory areas, while simultaneously facilitating the transition to a unified digital reporting system. These measures are intended to make the now 30-year-old VAT regulations more efficient for businesses and to reduce fragmentation costs.

The ViDA package is intended to significantly amend the VAT System Directive (Directive 2006/112/EC), the VAT Implementing Regulation (Regulation (EU) No. 282/2011), and the Regulation on Administrative Cooperation (Regulation (EU) No. 904/2010) to enable three key areas of action (Pillars 1–3).

At the ECOFIN Council meeting on November 5, 2024, the Commission’s proposal to modernize the European value-added tax system (ViDA) was adopted. The packages of measures (Pillars 1–3) will take effect after a delay, and several adjustments have been made to the details. 

• July 2028, Pillar 3: Single VAT Registration
• January 2030, Pillar 2: Platform Economy, expansion of the deemed supplier rule for the short-term rental of vehicles and accommodations
• July 2030, Pillar 1: Digital Reporting & e-invoicing, with an evaluation of the system in 2033
• January 2035, Pillar 1: Harmonization of national and cross-border reporting obligations
• Taxation: Council agrees on VAT in the digital age package - Consilium​​​​​​​