ViDA stands for “VAT in the Digital Age”: a package of EU legislation that makes the VAT system fit for the digital economy. For businesses that trade across borders within the EU, one element is particularly important: from 1 July 2030, digital reporting to the tax authority applies to cross-border B2B transactions, based on structured e-invoices. On this page you can read what ViDA involves, what takes effect when, and how to prepare.
What is ViDA? The three pillars
The European Commission presented the ViDA proposal in December 2022. The Council of the EU adopted the package on 11 March 2025. It amends the existing EU VAT rules and rests on three pillars.
Digital reporting requirements and e-invoicing
The platform economy
Single VAT Registration
ViDA timeline
- December 2022: the European Commission presents the ViDA proposal.
- 11 March 2025: the Council of the EU adopts the package.
- 14 April 2025: the directive enters into force. Since then, member states may make domestic e-invoicing mandatory under certain conditions, without separate authorisation from the EU. For e-invoices that comply with the European standard, the recipient’s consent is no longer required.
- 1 January 2027: minor changes for users of the One Stop Shop systems (OSS and IOSS).
- 1 July 2028: new VAT rules for short-term accommodation rental and passenger transport platforms, and the extension of the single VAT registration.
- 1 July 2030: digital reporting for cross-border B2B transactions within the EU, based on structured e-invoices.
- 1 January 2035: member states with their own real-time reporting system must align it with the EU model and EU standards.
What does ViDA regulate for cross-border invoices within the EU?
The key point for your invoicing: for cross-border B2B transactions within the EU, the structured e-invoice becomes the basis for digital reporting to the tax authority. ViDA defines an e-invoice as an invoice in a structured format that can be processed automatically. A PDF sent by email therefore no longer counts.
The starting point is the European standard EN 16931. For domestic transactions, member states may also allow other formats. Member states can moreover introduce their own domestic obligations that take effect earlier or go further than ViDA, so the rules may differ by country.
ViDA does not prescribe a specific network. However, in a ViDA pilot, OpenPeppol is testing an extension of the Peppol architecture in which tax authorities are connected to the network as a fifth corner. Read more about the format in What is EN 16931?.
What this means for you as a business
If you do business across borders within the EU, e-invoicing will become the basis for those transactions. You can prepare step by step:
Map your cross-border flows
Identify which customers and suppliers in other EU member states you exchange invoices with. Then you know where the obligation affects you.
Check your software
Can your software both send and receive structured e-invoices in accordance with EN 16931? A PDF invoice is not a structured e-invoice.
Ask about the approach to digital reporting
Ask your service provider or software vendor how they handle the digital reporting that ViDA requires.
Follow national legislation
National obligations may take effect earlier or go further than ViDA. You will find the latest developments per country in the news overview on Peppol.now.
Doing business in countries with their own system?
In countries with their own real-time reporting system, such as Italy or Poland, those systems must be aligned with the EU model by 2035 at the latest. Take this into account when making your choices.
Ready for ViDA?
In the comparison tool, you can see which providers support e-invoicing and reporting in the countries where you do business. Filter by coverage area and public networks.
Compare on Peppol.nowWhat this means for software vendors
For software vendors, ViDA directly affects the product roadmap. Sending and receiving structured e-invoices in accordance with EN 16931 becomes a basic requirement for customers that trade across borders. Functionality for the digital reporting of transaction data is also needed. Because member states have room for their own national implementation, a flexible architecture that can handle multiple reporting models helps. A connection to Peppol, either your own or through a Peppol service provider, provides an internationally deployable basis for exchanging e-invoices.
Take into account that the consent requirement for e-invoices that comply with the European standard has been dropped. Support multiple reporting models, because the national systems must be aligned with the EU model by 2035 at the latest. And follow the OpenPeppol pilot, in which tax authorities are connected to the Peppol network.
What this means for public sector bodies
For public sector bodies, there are two sides to this. Tax authorities must set up systems to receive and process digital reporting data and to exchange it with other member states. Organisations that receive invoices themselves, such as ministries, municipalities and other public institutions, must align their receiving processes with structured e-invoices, including those from suppliers in other EU member states. Many governments in Europe already receive structured e-invoices, for example via Peppol. Further preparation can build on that.
From ViDA to your next step
ViDA sets the European direction: structured e-invoicing and digital reporting are becoming the standard for cross-border trade. Next, read the Mandatory e-invoicing page for the broader approach. Want to know which solution suits your organisation? Compare providers in the comparison tool on Peppol.now.
