VAT in the Digital Age
mandatory e-invoicing in the EU

The new system introduces real-time digital reporting for VAT purposes based on e-invoicing, which will provide Member States with valuable information needed to step up the fight against VAT fraud, particularly carousel fraud.
 

e-invoicing, which will provide Member States with valuable information needed to step up the fight against VAT fraud, particularly carousel fraud.
 

While, in Poland, we are waiting for the Ministry of Finance to publish the final version of the legislation introducing the KSeF into the Polish tax system, the European Parliament (EP) member services are determining the procedures for progress on the package of EU changes in VAT in the Digital Age (ViDA). A meeting of the Economic and Financial Affairs Council (ECOFIN), which is expected to vote on the changes, is scheduled for 24 October 2023.

On 8 December 2022, the European Commission published a package of EU changes - ViDA. The European Parliament's Bureau of Analysis presented some of the issues surrounding the EU tax. In order for the proposal to become a directive, the Council must vote on it unanimously, after consulting the European Parliament and the European Economic and Social Committee.

To this end, the following steps are required:

• Presentation of the package proposal by the European Commission (EC) ViDA - status: December 2022.
• Opinions of national parliaments - status: initiated
• Opinions of the European Economic and Social Committee (EESC) and/or the Committee of the Regions (CoR).

Processing ViDA:

• Committee vote,
• voted in plenary,
• ECOFIN vote on ViDA, 24 October 2023.
• Adoption by the Council

VAT in the Digital Age is three reforms aimed at modernising compliance. The VAT pillars included in ViDA are:

• single VAT registration - by 2025.
• digital reporting requirements - by 2028.
• platform economics - by 2025.

Member States have an ambitious timetable to agree most of the above in 2023, as measures will be introduced in stages from 2024.