European Union
VAT in the Digital Age (ViDA) proposal- proposed delay to timeframes
The VAT in the Digital Age (ViDA) timeline has always been a contentious issue, and subject to much debate, both in domestic national Parliaments and multiple European institutions who are occupied with the ViDA negotiations. The European Parliament’s Committee on Economic and Monetary Affairs (ECON) is not immune to concerns around the ViDA timeline, and this has formed the basis of extensive discussions within ECON.
ViDA’s proposals are significant and projected to have great ramifications on the e-invoicing and e-reporting landscape over the coming decade. If the changes are extensive in nature, by extension this means that the timeline for business to comply becomes an important consideration.
ViDA pillars, as they are now characterised, have been defined and scheduled for implementation, currently in line with the following:
- Digital reporting requirements (2028)
- Single VAT registration (2025)
- The platform economy (2025)
ECON has proposed to delay each of the ViDA pillars by 1 year. Although the vote is non-binding, it does give an indication of the reception for the present timeframes and how the wider European legislative and decision-making bodies across the community are responding to the timeframes in the current proposal.
ECON will have a substantial say in the outcome of the ViDA proposal, and any changes they propose will likely influence the circuit of the ViDA proposal, although this vote is non-binding.
Based on current community reaction, it is highly likely that the third ViDA pillar will be heavily delayed, to 20230 or 2032, with the first two pillars on course for 2025.
Kofax is closely following the outcome of the ViDA debates currently transpiring in Europe. Kofax expects the next few months to be busy with some critical decisions executed, especially with EU Parliamentary elections looming- which makes the decision-making window for ViDA slightly more fraught. The EU Council Meeting in early December looks likely to cement some further clarification about ViDA, with timing likely to be at the forefront of their agenda.