The European Union’s Value-Added Tax in the Digital Age (ViDA) package, formally adopted on 11 March 2025, represents the biggest shake-up of the EU VAT system since the introduction of the Single Market in 1993. This ambitious reform aims to modernise VAT rules and effectively combat tax fraud. But looking beyond Exchequer and revenue protection, ViDA also seeks to simplify VAT compliance for businesses operating across Member States, with the goal of delivering a tax environment that is fit for purpose for the digital age. ViDA is built around three principal areas of reform, or pillars, each focused on updating the VAT system to better reflect how business is done in today’s digital world.
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