The digital transformation of community Value Added Tax (VAT) is entering a new phase with the implementation of the ViDA (VAT in the Digital Age) package. This European intervention focuses on three primary areas to modernize tax systems across member states.
The first direction involves the digitization of invoicing obligations and VAT data communication. This includes the progressive introduction of a European system based on structured electronic invoices and the digital transmission of information regarding cross-border operations. The second area concerns digital platforms, where their role in tax collection will be clarified and expanded in specific cases. The third pillar addresses the extension of simplified VAT regimes, particularly the One Stop Shop (OSS) and Import One Stop Shop (IOSS), aiming to reduce the need for fiscal identification in multiple countries.
The reform will be applied according to a staggered calendar. Initial modifications are scheduled to take effect from January 1, 2027. Subsequent interventions are planned for 2028 and 2030, which will have a more significant impact on electronic invoicing, platforms intermediating short-term rentals and passenger transport, and the management of cross-border operations.
Regarding Italy, Directive (EU) 2025/516 is currently being incorporated into the national tax system. This directive establishes that member states must apply the measures provided in Article 2 starting from January 1, 2027, ensuring coordination with the Italian VAT Consolidated Act.
Sources: Il Sole 24 Ore Italia.