The European Commission has released its work programme for the VAT in the Digital Age (ViDA) initiative, outlining the planned implementation activities for 2026.
This document builds on the implementation roadmap presented in September 2025 and supports the gradual rollout of the ViDA reform under the current EU long-term budget framework.
What is the ViDA reform?
The VAT in the Digital Age (ViDA) package is a major European Union reform designed to modernise the VAT system across Member States.
Its main objectives include:
- making VAT rules more modern and digital-friendly
- reducing VAT fraud and improving compliance
- simplifying VAT processes for businesses operating across borders
- adapting taxation rules to the platform economy (such as digital marketplaces and gig platforms)
The reform was formally adopted in March 2025 and will be introduced gradually over the coming decade, with full implementation expected by 2035.
Key implementation timeline
The ViDA package will be rolled out in several stages:
January 2027
- Expansion of the One Stop Shop (OSS) system to include additional B2C services, including e-charging services
- Technical and legal updates to improve the functioning of OSS and Import One Stop Shop (IOSS) systems
July 2028
- New VAT obligations for digital platforms in the short-term accommodation and passenger transport sectors
- Introduction of revised rules under the Single VAT Registration (SVR) system
- Mandatory reverse charge mechanism for certain cross-border supplies by non-established businesses
July 2030
- Introduction of Digital Reporting Requirements (DRR) for cross-border B2B transactions
- Mandatory use of electronic invoicing as the standard method for issuing invoices across the EU
January 2035
- Alignment of national digital reporting systems with the EU-wide reporting framework
- Completion of the final phase of the ViDA digital VAT transformation
What this means for businesses
The ViDA reform is expected to significantly change how VAT is handled in the EU. In the long term, it will:
- simplify cross-border VAT compliance
- reduce administrative workload for companies
- increase automation in tax reporting
- require businesses to upgrade invoicing and accounting systems
Companies operating in the EU will likely need to adapt their digital infrastructure to comply with new reporting and e-invoicing requirements.
Conclusion
The 2026 work programme confirms that the European Union is continuing its step-by-step transition towards a fully digital VAT system. Businesses should prepare for gradual but significant changes over the coming years as the ViDA framework is implemented.
Source
European Commission – Taxation and Customs Union
https://taxation-customs.ec.europa.eu/news/vat-digital-age-2026-work-programme-available-2026-05-22_en
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