EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Select your location
Local sites
The EU has reached agreement on the VAT in the Digital Age (ViDA) proposals.
There are three ViDA pillars:
- Introducing common standardized Digital Reporting Requirements (DRD) and e-invoicing for intra-community transactions, making VAT reporting for cross-border transactions fully digital
- Addressing the challenges of the platform economy for short-term rental of accommodation and passenger transport services by enhancing the role of digital platforms in collecting VAT
- Reducing VAT registration requirements in the EU by expanding the scope of the One Stop Shop (OSS) single VAT registration for imports and the reverse charge for B2B transactions
Businesses operating in the EU will need to consider the implication of the new rules and the associated systems, tax and commercial implications. Once entered into force, the new rules will have gradual implementation dates, ranging from 2025 to 2035.
Many countries already are in the process of introducing e-invoicing and real-time reporting requirements ahead of the deadline. As an immediate step, businesses are advised to understand the upcoming rules and start adjusting ERP systems and processes. This is especially pertinent for businesses headquartered in Denmark with operations across the world.
Contact
- Mick Jørgensen, Partner, Indirect Tax (Tax) tlf. +4551221643
- Alex Antonescu Clita, Senior Manager, Indirect Tax (Tax) tlf. +4525294053
- Deniz Asil, Senior Consultant, Indirect Tax (Tax) tlf. +4525293121
Summary
Businesses should start assessing the potential VIDA impact on them.