The ViDA package: electronic invoicing in the European Union
ViDA Package – what is it and what does it mean for entrepreneurs?
The ViDA Package is a set of EU regulations designed to adapt the current VAT system to today’s digital reality. ViDA applies to all entrepreneurs selling goods or services to customers within the European Union. This includes online e-commerce platforms and intermediaries – regardless of where they are based.
The VAT in the Digital Age Package will be introduced according to a defined timeline, based on three key milestones:
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The first milestone, already behind us, is the removal of the requirement to obtain approval from the European Commission for national e-invoicing.
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The second milestone, scheduled for July 2030, stipulates that national e-invoicing systems (with some exceptions for systems implemented before 2024) will comply with EU standards. Moreover, e-invoicing will become mandatory for intra-Community transactions, with a short 10-day deadline to issue an invoice from the taxable event.
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The third milestone, planned for January 2035, will mean the full harmonization of e-invoicing systems across all EU Member States.
The above are the most important changes directly related to the introduction and alignment of e-invoicing systems. In addition, the ViDA Package also foresees, among other things:
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The gradual extension of the OSS system, starting January 1, 2027, to cover B2C transactions related to the supply of heating, electricity, cooling, and natural gas through networks.
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The introduction of the Single VAT Registration rule from July 1, 2028, which will significantly simplify registration obligations for certain taxpayers operating in multiple EU Member States.
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The extension from July 1, 2028, of VAT compliance obligations for digital platforms that facilitate passenger transport services or short-term rental of residential properties.
ViDA Package and KSeF – what do entrepreneurs need to know?
Just a few days ago, we published a blog post about the National e-Invoicing System (KSeF). This system, which will become mandatory for all companies operating in Poland as of next year, marks a true revolution in how invoices are issued and stored.
That is why, when discussing the ViDA Package, we must also mention the Polish KSeF system.
Poland, which received approval from the European Commission to implement KSeF before 2024, has until 2035 to adapt this solution to EU standards.
Such alignment may prove necessary because KSeF, in its current form, differs from the EU-defined norm. The KSeF schema and the Polish XML format have a broader scope than the European standard EN16931.
However, the ViDA Package allows Member States to introduce schema conversion (from the national schema to the EU one). It is therefore possible that instead of aligning the KSeF schema with EU standards, Poland will introduce such a conversion mechanism. At this stage, however, it is too early to predict whether this will happen. Entrepreneurs must therefore keep a close eye on developments…
Lawmakers, both at the national and EU level, have long recognized that the current VAT system is not suited to the digital era. This is precisely why e-invoicing regulations are being introduced step by step. Are you ready for them? If not, now is the right time to start preparing. Remember – KSeF will become mandatory for all entrepreneurs in 2026!
Are you looking for a reliable accounting firm that will handle the full accounting of your company and ongoing settlements?
TaxCoach will help you navigate this new reality and implement all necessary solutions, while also offering tax and business advisory services.
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