ViDA - VAT in the Digital Age
Businesses across the world have been preparing to see how the European Commission’s proposals will impact them. In other words, EU is creating a system more compatible with today’s increasingly digital world. One of the central goals is for the system to be more resistant to fraud and non-compliance.
ViDA new rules can be broken down into three parts:
First set of changes are already expected in 2024 focus on digital reporting. These include real-time reporting, continuous transaction controls with e-invoicing.
Second goal is from 2025, to ensure VAT treatment of the platform economy is implemented correctly. Online businesses will be subject to the same VAT regulation as other businesses.
Third part, starting January 2025, continues to remove the need for multiple VAT registrations for companies with cross-border operations. EuroVAT is very excited about these efforts! ViDA is trying to expand the scope of the one-stop shop, so that U.S. companies operating across multiple EU states may not need to register in multiple countries.
U.S. and Canadian companies will benefit from tremendously from such an extension. The single VAT registration zone “one-stop shop” and their proposed extension of the reverse charge) Your team of VAT experts at EuroVAT is looking forward to assisting you through the entire process. We will educate and follow the new regulations, helping you implement procedures to comply with cross-border digital reporting regimes. Count on us to make sure you are in compliance at all times, please email us at email@example.com to discuss your global EU expansion plans.
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