Nové výzvy v kontexte schválenej iniciatívy „DPH v digitálnom veku“, známej aj ako „ViDA“

In the coming years, EU member states are to incorporate a new concept of "VAT in the Digital Age", also known as "ViDA", into local legislation. 

The European Economic and Financial Affairs Council (ECOFIN) adopted this initiative on 5 November 2024 to simplify and modernise EU VAT rules, and to strengthen anti-fraud measures. After approval by the European Parliament, this legislation should come into effect soon.

Below, we provide a brief overview of the most important innovations that the three pillars of the "VAT in the Digital Age" package will bring and the currently valid timeframe for their implementation:

1. Single VAT registration

(July 2028)

• New regulation and extension of the "One-Stop Shop" (OSS) in particular for:

              -the relocation of own goods to another EU Member State;

              -delivery of goods with installation or assembly, 

              -delivery of goods on board ships, planes or trains; 

              -gas, electricity, heat and cold supplies.

• Abolition of the "call-off stock" simplification.

2. VAT rules for the platform economy 

(January 2030, voluntarily from July 2028)

• Introduction of the deemed supplier model in:

            -digital platforms providing short-term accommodation rental services (accommodation rental up to 30 days); and

            -passenger transport.

• The deemed supplier or operator of the platform will be obliged to collect VAT directly from the customer instead of the actual service provider and pay it to the tax authorities.

• However, there will be situations where these rules do not apply – e.g. in the case of a special VAT regime for travel agents, or when the service provider will itself charge VAT to its end customers.

3. Digital VAT reporting

(July 2030, harmonisation to take place by 2035)

• Mandatory real-time digital reporting of cross-border transactions.

• The possibility of introducing digital reporting for domestic transactions as well.

• Transition to mandatory e-invoicing – the consent of the recipient of the goods or services will no longer be required. 

• Paper invoices will only be allowed to be issued in exceptional cases.

• Cancellation of recapitulative statements.

Although the introduction of individual pillars does not seem to be in sight yet, we recommend that you start thinking about what impact "ViDA" will have on your business now and closely monitor the development regarding the implementation of this legislation in the Slovak Republic. 

If you are interested in a more detailed discussion of the announced new measures, do not hesitate to contact the author of the article or your contact person at EY Slovakia.