Estonia opted to exercise its veto right, seeking a compromise that would allow member states to voluntarily join the obligations of a renowned provider in the field of transport and accommodation hubs, which is a key element of pillar 2.

However, the ECOFIN Council approved the other two pillars, namely “Digital Reporting Obligations” and “Uniform VAT Registration”.

The new schedule and revised proposals for ViDA include:

• Agreement on ViDA and changes to the VAT directive in 2024.
• The possibility for member states to implement national e-invoicing systems for domestic transactions without the need for European Commission approval.
• The requirement for businesses to prepare for accepting electronic invoices without prior customer consent in the event of a national system being introduced.
• Deferral or inclusion of VAT rules reforms in e-commerce into EU customs reforms in 2028.
• Implementation by the European Commission of measures aimed at combating financial abuses related to IOSS numbers, including linking the IOSS number to the shipment number.
   

  January 2026: Minor modifications in the 2021 e-commerce package:

  • Introduction of a €10,000 threshold for B2C distance sales, applicable only in the country where the seller is established.
  • Update of rules concerning the taxable points.
  • Inclusion of cross-border supplies of energy such as natural gas, heating, and cooling as distance sales, enabling their declaration in the VAT return via the One-Stop-Shop (OSS) scheme.

  July 2027: Single VAT registration and platform economy:

  Pillar 2: Platform Economy

  • Short-term accommodation rental and ride-sharing platforms will be recognized as deemed service providers for their suppliers, collecting VAT on their behalf.
  • Member states will have the option to exclude providers who hold a VAT identification number or use the new special VAT scheme for SMEs.
  • The definition of short-term transactions will be adjusted to 30 days, in line with the initial proposal (previously 45 days).
  • Travel agencies will be excluded from deemed suppliers.
  • Transactions conducted through platforms will be excluded from the Tour Operators Margin Scheme (TOMS).
  • Record-keeping requirements for digital platforms will remain unchanged.

  Pillar 3: Single VAT Registration (SVR)

  The scope of the One-Stop-Shop (OSS) reporting has been expanded to cover stock movement and all electronic trade within the European Union. For businesses outside the EU, the country of dispatch of goods will be the identification country for OSS registration purposes. Good investments may be included in the OSS scope provided that the owner is entitled to a full VAT refund. Additionally, the OSS scope has been widened to include sales and installations, ship, train, and aircraft sales, as well as energy sales through systems.

  The proposal to introduce the obligation to apply IOSS for imported B2C sales has been withdrawn, and the provisions regarding ad hoc solutions for inventory on demand will cease to apply from July 1, 2027. Harmonization of reverse charge rules regarding domestic B2B transactions made by suppliers outside the EU will leave member states some flexibility in the conditions of application (fixed or only identified recipient).

  In July 2030, obligations for digital reporting (DRR) for intra-community transactions will be introduced, covering supplies, acquisitions, B2B services, reverse charge, energy supplies to taxpayers, and triangulation. Each member state will be able to develop its own reporting protocols and technical specifications. The reporting period will be extended to 10 days after the issuance of the e-invoice, and the EU Sales List will be replaced by the DRR system. Existing systems for reporting domestic transactions will remain in force, and the DRR system will be assessed by the European Commission by March 2033. Additionally, structured electronic invoicing will be mandatory for DRR transactions.

  • Electronic invoices based on Directive 2014/55/EU will become mandatory for each DRR transaction.
  • A new definition of the EN16931 standard will be introduced.
  • Basic validations or technical specifications for electronic invoices, known as “accreditation systems,” have already been introduced, enabling tax authorities to verify data structure through the platform.
  • The deadline for issuing electronic invoices will be extended to 10 days from the tax event, compared to the previous 2 days.
  • Holding an electronic invoice for qualified transactions will become a necessary condition for VAT deduction or refund.
  • Electronic invoices will replace paper invoices for legal purposes, except in specified situations.
  • The proposal to ban the use of batch invoices has been abandoned under pressure from businesses. Instead, they can be used under certain conditions:
    • VAT on the invoice must be charged in the same month;
    • The batch invoice must be issued by the 10th day of the following month;
    • It is a financially abusive operation, and the member state has the option to prohibit its use.
  • During its presidency in the EU Council, Belgium will seek to reach an agreement with Estonia at the next meeting of the ECOFIN Council, scheduled for June 21, 2024. Further steps will be announced soon.