The European Union is undertaking a major overhaul of its VAT system with the introduction of ViDA (VAT in the Digital Age). As part of this reform, from July 2030, businesses involved in intra-community transactions will be required to implement structured e-invoicing and near real-time digital reporting. This initiative aims to create a more transparent, efficient, and fraud-resistant VAT system across EU member states. 

By standardising reporting procedures and eliminating discrepancies between national regulations, ViDA seeks to simplify compliance for businesses while enhancing the ability of tax authorities to detect and prevent fraud.

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Key Changes

• Mandatory E-Invoicing: Based on the EN16931 standard, electronic invoicing will become essential for all intra-community transactions subject to DRR. Specifically, businesses will need to adopt software that support structured e-invoicing.
• Harmonised Digital Reporting: Transaction data must be transmitted to tax authorities within 10 days of issuance, improving traceability. As a result, businesses will have more efficient processes for reporting.
• Elimination of Summary Statements: Summary statements for intra-EU sales will be replaced by a more detailed digital reporting system.
• New VIES System: A centralised database will be established to monitor intra-EU transactions, with a phased replacement of the current system by 2032.

Impact on Businesses

Companies will need to adapt their processes to comply with the new requirements. Key challenges include:

• Updating Invoicing Systems: Adoption of software compatible with the required structured format.
• Adapting to National Requirements: Each member state may have unique technical specifications.
• Increased Transparency and Monitoring: The new VIES system will enable tax authorities to track intra-EU transactions in real time.

Although these changes require an initial investment from businesses, they also offer advantages such as reduced errors, better payment traceability, and streamlined administrative processes. 

ViDA is profoundly transforming VAT management in Europe. E-invoicing and digital reporting will become central to tax compliance. Therefore, businesses must start preparing now and adjust their systems before the new framework takes effect in 2030.

At MyDutyCollect, we help businesses navigate these complexities by providing automated customs clearance, accurate duty and tax calculations, and compliance solutions. As a result, you can stay ahead of regulatory changes and ensure compliance. Having the right tools in place can make all the difference. 

Get in touch with us to see how we can support your cross-border operations. Subscribe to our blog and visit our website​ and ​LinkedIn​ page for more updates. You can also reach out to us by sending a message to ​info@mydutycollect.com. We will be delighted to hear from you.