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08.24.23

VAT in the Digital Age (ViDA) update

The VAT in the Digital Age (ViDA) proposal has recommended radical changes to the e-invoicing and e-reporting landscape over the next 5 years.

With EU Member States working on a rotational basis, Spain took over the Presidency of the EU Council in July 2023. Their tenure in this capacity is expected to last 6 months, during which Spain, along with other EU Members, is striving to reach a final agreement on the ViDA package.

A final version of the ViDA package is tentatively poised for 8 December 2023. Currently, the European Parliament has proposed 251 amendments to the ViDA package, suggesting there is still much to be debated. However, there does seem to be some common ground which indicates that each of the ViDA pillars (those relating to the Digital Reporting Requirements ; Single VAT registration and the Platform Economy) should be delayed by 1, if not 2, years.

Kofax acknowledges that ViDA will have a significant impact on e-reporting and e-invoicing practices. We are closely following ViDA developments, with a view to assessing the final ViDA package and potential impact for Kofax.

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