What is ViDA
VAT in the Digital Age (ViDA) is a package of EU law adopted on 11 March 2025. It changes how VAT is reported, how online platforms are taxed and how many EU VAT registrations a business needs. It comes in over several years, from 2025 to 2030.
The main legal text is Council Directive (EU) 2025/516, which amends the EU VAT Directive.
Does ViDA affect UK businesses
Only where you have EU VAT obligations. It affects you if you are registered for VAT in an EU country, sell through EU platforms, or invoice EU customers who will expect e-invoices. Exports from Great Britain are not caught by the 2030 reporting rules.
The UK is not part of ViDA, so UK law does not change because of it.
When do the ViDA changes start
The first change applied from adoption on 11 March 2025, when EU countries gained the right to require domestic e-invoicing. Platform and single registration rules start on 1 July 2028. E-invoicing and digital reporting for intra-EU B2B sales start on 1 July 2030.
| Date | What changes | Pillar |
|---|---|---|
| 11 March 2025 | ViDA adopted. EU countries can require domestic e-invoicing without asking Brussels first | Digital reporting |
| 1 July 2028 | Platforms become the deemed supplier for short-term accommodation and passenger transport | Platform economy |
| 1 July 2028 | One Stop Shop schemes widened, so fewer separate EU VAT registrations | Single VAT registration |
| 1 July 2030 | E-invoicing and near real-time digital reporting for intra-EU B2B sales | Digital reporting |
Some EU countries can opt out of parts of the platform rules until 2030, so the start date for platforms may differ by country.
What changes for e-invoicing and digital reporting
From 1 July 2030, businesses making cross-border B2B supplies inside the EU must issue structured e-invoices and report the data to their tax authority. A structured e-invoice is machine-readable data based on the European standard EN 16931, not a PDF sent by email.
The digital reports replace the old EC Sales Lists (recapitulative statements). They cover supplies of both goods and services.
Before 2030, the bigger change is domestic. Since adoption, EU countries no longer need special permission to make e-invoicing compulsory for sales inside their own borders. Several have started or announced their own systems. Each sets its own format and dates, so check the country you are registered in.
Who it reaches in the UK
- UK businesses with an EU VAT number. If you hold stock in, say, Germany and sell from there to businesses in other EU countries, those are intra-EU supplies. You will fall under the 2030 rules. Domestic German or French sales fall under that country's own mandate.
- UK businesses with EU customers but no EU registration. The intra-EU reporting rules do not apply to your exports from Great Britain. But your customers may ask for invoices in a format their systems can take in.
- Northern Ireland businesses. NI follows EU rules for goods, but ViDA's reporting rules are written for EU member states. Watch for HMRC guidance before assuming either way.
The UK is running its own plan. Mandatory e-invoicing for UK B2B and B2G sales has been announced for April 2029, though it is not law yet. If you pick invoicing software now, choose one that can send structured e-invoices for both.
What is the deemed supplier rule
From 1 July 2028, online platforms that facilitate short-term accommodation rentals and passenger transport become the deemed supplier for VAT. Where the actual provider does not charge VAT, often because they are an individual or below the threshold, the platform charges and pays it.
For UK businesses this matters if:
- you own a holiday let in an EU country and take bookings through a platform, as the platform may add VAT to the price
- you run a platform that facilitates these services in the EU, as you may become liable for the VAT on them
The aim is to treat platform bookings the same as hotels and taxis that already charge VAT.
Worked example
Say you own a holiday flat in an EU country and are not VAT registered there. A week's booking through a platform costs €1,000, and the local VAT rate on holiday lets is 10% (an example rate; rates vary by country).
If the platform adds VAT on top, the guest pays €1,000 × 1.1 = €1,100. If the price has to stay at €1,000, the VAT is already inside it: €1,000 ÷ 1.1 = €909.09, so the VAT is €90.91. That €90.91 comes out of the €1,000 before you and the platform share the rest.
What is the single VAT registration change
From 1 July 2028 the One Stop Shop (OSS) schemes cover more transactions, including some movements of your own goods between EU countries. More businesses can then report through one OSS return instead of several local returns. UK sellers with EU warehouses may need fewer EU VAT registrations.
Today, many businesses selling into several EU countries need a VAT number in each. How much you save will depend on how you sell and where your stock sits. For how OSS and IOSS work now, see our guide to EU VAT for UK businesses.
What should UK businesses do now
- List your EU VAT registrations. Each one is a country whose domestic e-invoicing rules may apply to you before 2030.
- Check your invoicing software. Ask your provider whether it can produce structured e-invoices to EN 16931 and connect to national systems. Plan for UK e-invoicing in 2029 at the same time.
- Clean your customer data. E-invoicing and reporting reject invoices with wrong VAT numbers or addresses. Check EU numbers on VIES now.
- Review platform sales. If you sell accommodation or transport through EU platforms, expect prices and contracts to change before July 2028.
- Keep an eye on dates by country. Opt-outs and domestic mandates mean the EU will not move at one speed.
Rates still differ by country. Our EU VAT rates table has all 27.
This is general guidance. Check the EU text or ask an adviser about your own case.
Questions
Does ViDA apply to UK businesses?
Only where you have EU VAT obligations: an EU VAT registration, sales through EU platforms, or intra-EU trade from EU stock. Exports from Great Britain to EU customers are not caught by the 2030 reporting rules.
When does EU e-invoicing become mandatory?
For cross-border B2B sales between EU countries, from 1 July 2030. Individual EU countries can make domestic e-invoicing compulsory earlier, and some already have.
What is the deemed supplier rule?
From 1 July 2028, platforms facilitating short-term accommodation and passenger transport charge VAT where the actual provider does not. Some countries can delay this until 2030.
Is the UK bringing in e-invoicing too?
Yes, it has been announced for UK B2B and B2G sales from April 2029, but it is not law yet.
Figures in this guide come from our rules file, last checked against HMRC on 4 October 2026.
