Draft Council directive amending Directive 2006/112/EC — VAT rules for the digital age

Decision

The European Parliament approved the Council draft amending Directive 2006/112/EC (15159/2024 – C10‑0170/2024) and adopted the committee report A10-0001/2025 using the simplified procedure, with the committee decision and adoption recorded on 16 January 2025. Parliament instructed its President to forward its position to the Council, the Commission and the national parliaments and asked the Council to notify or re-consult Parliament if it intends to depart from or substantially amend the approved text.

What Changes

The ViDA package introduces three core changes: a new real-time digital reporting system based on e-invoicing, updated VAT rules for the platform economy and a single VAT registration for businesses selling to consumers across the EU. The Council text phases in a deemed supplier regime voluntarily from 1 July 2028 and mandatorily from 1 January 2030 allows Member States to exempt SMEs from that regime permits greater flexibility for national invoicing systems reintroduces summary invoices under conditions and extends implementation deadlines beyond the Parliament’s proposals.

Who Is Affected

Member States, businesses selling to consumers across the EU including platform operators and SMEs are directly affected by the changes to VAT reporting, registration and platform rules.