Commissioner Wopke Hoekstra hosts Implementation Dialogue on VAT in the Digital Age (ViDA)

These new rules aim to modernise the EU’s Value-Added Tax (VAT) system, make it work better for businesses and more resilient to fraud, while addressing challenges in VAT raised by the development of the platform economy.

The meeting brought together 38 key stakeholders, including international large, small and medium-sized businesses, trade associations, and tax advisors, reflecting in particular the scope of the measures, including:e-commerce actors, short-term accommodation rental and passenger transport platforms, the delivery sector, financial technology, technical manufacturing, telecommunications and software development businesses.

Following the recent adoption of the ViDA package, the dialogue served a pivotal role in gathering feedback, ensuring adaptable and responsive legislation implementation based on stakeholder’s concerns. 

Participants highlighted the importance of avoiding fragmentation, supporting SMEs and the need for continuous cooperation between businesses, Member States, and the Commission. Considering ViDA's specific elements, the discussions addressed potential complexities in Digital Reporting Requirements (for example, the need for a harmonised transmission model) and the platform economy rules (for example, the need for the harmonised application of the deemed supplier regime) and the Single VAT Registration (for example, the need  for close cooperation between VAT and Customs authorities for the Import One-Stop-Shop).

Commissioner Hoekstra reflected on ViDA's transformative potential: "ViDA is one of the most significant EU VAT reforms in decades, aiming to simplify and digitalise VAT processes amidst today's economic realities. ViDA will have a large impact on the practices of both the business community and tax administrations. It is a complex package but it is vital. If properly implemented, ViDA will lead to tremendous savings by reducing compliance costs, increasing in tax collection and reducing tax fraud. With collaboration from Member States and the private sector, we can achieve a consistent and effective rule application."

Commissioner Hoekstra emphasised ongoing dialogues with stakeholders, through technical meetings and various fora, to maintain transparency and efficacy in implementing ViDA's complex measures. 

The summary conclusions are available on the dedicated webpage: Implementation Dialogue on Taxation with Commissioner Wopke Hoekstra - Taxation and Customs Union

Background

VAT in the Digital Age

ViDA intends to align the EU VAT system with the digital economy, combat VAT fraud, simplify procedures for SMEs, and address tax loopholes to create a fair digital marketplace. The reforms aim to streamline VAT compliance, reduce administrative burdens, and strengthen fraud prevention across the Single Market. 

The main components include:

• Digital Reporting Requirements (DRR): Mandating e-Invoicing and near real-time digital reporting for intra-EU transactions will be effective from 1 July 2030.
• New VAT Rules for the Platform Economy: Platforms facilitating short-term accommodation or passenger transport services will be responsible for collecting and remitting VAT under certain conditions.
• Single VAT Registration: Businesses will benefit from simplified procedures and an expanded one-stop shop, limiting the need for multiple VAT registrations across Member States.

Significant revenue losses across the Member States are due to fraud and non-compliance. The digital transformation has created new challenges in VAT collection but also opportunities, ViDA seeks to improve VAT collection mechanisms by integrating digital tools, helping governments recover billions in lost revenue. ViDA will help Member States collect up to EUR 18 billion more in VAT revenues annually over a ten-year period (EUR 11 billion as a result of anti-fraud measures).

More information: VAT in the Digital Age (ViDA) - Taxation and Customs Union

Implementation Dialogues

Implementation Dialogues are a consultation tool at the political level launched in the spring of 2025. The Communication for a Simpler and Faster Europe outlines this new approach to make EU laws and policies simpler and to implement them better. The main purpose is to strengthen and boost European competitiveness by seeking feedback from stakeholders to facilitate the implementation of EU policies and the simplification of EU rules and spending programs. These meetings will be held by Commissioners twice per year and the outcomes will be made available to the wider public. 

More information: Implementation Dialogues