EU ViDA Directive: What Changes for Businesses in 2028
The VAT in the Digital Age (ViDA) directive will mandate real-time digital reporting and e-invoicing across all 27 EU member states from 2028. Here is what to expect.
The European Commission's VAT in the Digital Age (ViDA) package is one of the most significant tax reforms in EU history. Adopted in 2024 and phased in through 2028, ViDA introduces three main pillars:
The Three ViDA Pillars
1. Digital Reporting Requirements (DRR)
From 2030, intra-EU B2B transactions will require real-time digital reporting to national tax authorities. This means sending structured invoice data — not PDFs — within two days of the transaction.
2. E-Invoicing as the Default
ViDA removes the current requirement for buyer consent before sending e-invoices. From 2025 (for member states that opt in early), structured e-invoices become the default for intra-EU B2B transactions.
3. Single EU VAT Registration
Businesses will be able to register for VAT once in the EU and handle all cross-border obligations through one portal — a significant simplification for companies operating in multiple member states.
Timeline
- 2025–2026: Member states that already have mandates (Germany, Italy) are grandfathered in
- 2028: All new EU e-invoicing systems must comply with ViDA interoperability standards
- 2030: Cross-border intra-EU DRR becomes mandatory
What This Means for Your Business
If you already comply with Germany's XRechnung mandate or Italy's FatturaPA system, you are ahead of the curve. The main change in 2028 will be ensuring your system can handle cross-border reporting — not just domestic invoicing.
