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Economic and Financial Affairs Council (ECOFIN) – VAT in the Digital Age (ViDA) feedback

The VAT in the Digital Age (ViDA) proposal has - understandably - spawned much debate about the effectiveness, feasibility and practicality of its application. Our previous post commented on the much-anticipated Economic and Financial Affairs Council (ECOFIN) conference which laid a platform to debate the ViDA proposals.   Overall, ViDA has been applauded by EU Member States to nurture a less fragmented and harmonised e-invoicing topography. However, the convention did raise some concerns in respect of the proposal.  While the overall sentiment of working towards a harmonised e-invoicing / e-reporting framework is encouraged, certain Member States felt that greater flexibility regarding domestic e-reporting should be considered.   Pre-clearance remains a contentious issue, and the Commission will need to address whether basic, sparse checks- which can be viewed as synonymous with e-invoicing - are permitted.  Finally, doubts were expressed around the 1 January 2028 date by certain Member States- which was deemed too soon to implement, given cost and development considerations.  The convention, while wholly supporting the ViDA proposal, also unearthed some significant questions that the European Commission will need to address.  The ECOFIN is expected to meet on 17 October 2023, with the aim of putting some finality with respect to some of the questions raised.  

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