Skip links

EU VAT reforms after ViDA

What’s VAT reforms are next after VAT in the Digital Age

As the EU VAT in the Digital Age reforms near political agreement for implementation likely between 2025 and 2030, what are the next likely changes? A glimpse has been provided by the EU Commissions VAT Expert Group (VEG).

It has outlined areas for reform to help improve the efficiency of the EU VAT union, for businesses, consumers and tax authorities. These ideas will be worked-up over the rest of 2024.

VEG has indicated the following four areas for investigation:

  1. Simplification: VAT exemption application; special schemes and how adopted differently between member states; and derogations from the Directive.
  2. Digitalisation options: use of split payments to tackle fraud; allowing deductions in One Stop Shop for pan-EU reporting; crypto-assets and their VAT treatment; further e-invoicing refinements; VAT data storage by authorities; and digital reporting regimes.
  3. Green VAT; how can VAT be applied to promote EU environmental objectives, including exemptions and deductions?
  4. VAT 2050: what would the ideal VAT system of 2050 look like?

The next stage is for the VEG to prepare a first report over the Summer, and continue to develop ideas for the rest of 2024.

EU VAT reforms

Reform (click for details) Update
Contact VATCalc to learn how our single VAT determination, reporting and e-invoicing platform can help you manage and thrive with global compliance change
2035 Harmonisation of EU e-invoicing and domestic regimes Jan 2035
2030 Digital Reporting Requirements and e-invoicing harmonisation July 2030
Structured e-invoices supercede paper invoices July 2030
EC Sales lists replaced by Digital Reporting Requirements July 2030
2028 EU Customs reforms Published May 2023
€150 import consignment threshold removed Published May 2023
2027 Single VAT Registration in the EU - extension of OSS July 2027
Call-off stock VAT simplification ends July 2027
Harmonisation of B2B Reverse Charge rules July 2027
Proposal for VAT treatment of the platform economy July 2027
2026 DAC8 harmonised crypto asset reporting Approved May 2023
2025 VAT registration thresholds equivalence foreign businesses 1 Jan 2025
Virtual events VAT rule changes 1 Jan 2025
Financial Services VAT exemption reform proposals Consultation complete; proposal awaited
Tour operator margin scheme VAT reforms EC undertaking fresh review
2024 Payment providers' seller transaction reporting and bookkeeping obligations In effect since 1 Jan 2024
2023 DAC 7 - marketplace reporting harmonisation In effect since 1 Jan 2024
2022 IOSS reforms to prevent double taxation On hold
EU reduced VAT rate freedoms Entered into force 6 April 2022
VAT in the Digital Age proposals Published Dec 2022
EU DAC8 cryptocurrency tax reporting proposals Published Dec 2022
VAT Gap Initiative Q3 2022
EU Definitive VAT System On hold
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option


Get our latest news right in your mailbox