The ViDA package: e-invoicing and digital reporting in EU VAT

«VAT in the Digital Age» redraws European VAT: electronic invoicing for cross-border transactions, data reporting close to the time of the transaction and new rules for platforms.

22 July 2026By Studio Ponchio3 min read

The ViDA package introduces a phased reform of VAT across the Union, resting on three pillars: digital reporting and electronic invoicing for intra-EU transactions, the platform economy regime and single VAT registration, designed to cut the compliance burden on businesses operating in several Member States.

Invoicing and reporting

Cross-border transactions are to move to structured electronic invoicing with data transmitted close to the time of the transaction, replacing the recapitulative statements. Member States will be able to extend the obligation to domestic transactions as well.

Platforms and single registration

For short-term accommodation rental (up to 30 consecutive nights to the same person) and passenger transport by road, from 1 July 2028 the platform facilitating the supply will be treated as the deemed supplier, that is, it will be regarded as receiving and supplying the service itself for VAT purposes (new Article 28a of Directive 2006/112/EC), unless the underlying supplier provides the platform with its VAT identification number and declares that it will charge VAT on the supply. Member States may defer the measure, but not beyond 1 January 2030. Single VAT registration extends the one-stop-shop model, sparing businesses from having to register for VAT in every Member State of destination.

How to get ready

Implementation is staggered under Article 6 of the Directive. From 14 April 2025 Member States may impose domestic electronic invoicing without authorisation from the Council and without the recipient’s consent. From 1 January 2027 the clarifications to the OSS and IOSS schemes will apply. From 1 July 2028 the following will take effect: the deemed supplier rule for platforms (deferrable to 1 January 2030), the extension of the one-stop shop, the scheme for transfers of own goods and the mandatory reverse charge for suppliers neither established nor identified for VAT purposes. From 1 July 2030 structured electronic invoicing will become the rule for intra-EU transactions: the invoice will have to be issued within ten days of the chargeable event and its data will be transmitted to the tax authority at the time of issue; recapitulative statements will be abolished. By 1 January 2035 national real-time reporting systems already in place on 1 January 2024, such as the Italian one, must be aligned with the European standard. It therefore pays to map cross-border flows early and to check that invoicing systems are up to the task.

Implementation in Italy

The European Delegation Law 2025 (Law no. 36 of 17 March 2026, Annex A, point 13) empowered the Government to transpose the Directive. The first legislative decree, implementing Article 2 of the Directive with the provisions applicable from 1 January 2027 (sales through platforms and electronic interfaces, calculation of the EUR 10,000 threshold, coordination with the special schemes and the SME scheme, refunds), was given preliminary approval on 4 August 2026, submitted to the parliamentary committees for their opinion (atto del Governo no. 436) and given final approval by the Council of Ministers on 28 October 2026; as at the date of this note it is awaiting publication in the Official Gazette. The consolidated VAT code (Legislative Decree no. 10 of 19 January 2026, Article 171) will also apply from that same date, 1 January 2027: the coordination between the two texts must be checked against the published decree. The 2028 and 2030 measures (platforms, single registration, intra-EU e-invoicing and digital reporting) have yet to be transposed.

Sources

The «VAT in the Digital Age» (ViDA) package: Council Directive (EU) 2025/516, Council Regulation (EU) 2025/517 and Council Implementing Regulation (EU) 2025/518 of 11 March 2025 (OJ L, 25 March 2025), EU measures on e-invoicing, digital reporting, the platform economy and single registration.
Corrigendum to Directive (EU) 2025/516 (OJ L, 2 October 2025, Italian and Maltese versions): Article 6(5), first subparagraph.
Commission Implementing Regulation (EU) 2026/1869 of 27 July 2026 (OJ L, 28 July 2026), amending Implementing Regulation (EU) 2020/194 on the OSS and IOSS special schemes and the transfer of own goods scheme.
Law no. 36 of 17 March 2026 (European Delegation Law 2025), Annex A, point 13; Council of Ministers press releases no. 185 of 4 August 2026 and no. 195 of 28 October 2026; atto del Governo no. 436.
Legislative Decree no. 10 of 19 January 2026 (consolidated VAT code), Article 171.
VAT Directive 2006/112/EC, as amended.

← Back to the Tax Observatory