The Council Directive (EU) 2025/516 for the EU’s VAT in the Digital Age (ViDA) Package took effect on 14 April 2025, 20 days after its publication in the EU’s Official Journal.
The package introduces updates to the EU’s VAT systems to align with the demands of digital economies, tackle VAT fraud, and streamline administrative processes for small businesses and service providers.
On 8 December 2022, the European Commission proposed measures to modernise the EU’s Value-Added Tax (VAT) system, make it work better for businesses and more resilient to fraud, and address challenges in VAT raised by the development of the platform economy.
Earlier, the European Commission (EC) announced on 11 March 2025 that the VAT in the Digital Age (ViDA) Package had been adopted following consultation with the European Parliament. The European Parliament approved the VAT in the Digital Age (ViDA) Package on 12 February 2025.
The rollout is set to occur gradually, with full implementation expected by January 2035.
