European Parliament backs one-year delay for VAT in Digital Age (VIDA) package implementation
Members of the European Parliament (MEPs) voted in favor of opinions on legislation to update the EU’s VAT regime, part of the VAT in the Digital Age (VIDA) package. The VIDA package aims to enhance technology use for tax enforcement and modernize VAT rules for the digital economy. While supporting the Commission’s proposal, MEPs advocated for a one-year delay in most VIDA package elements, including VAT reporting updates, e-invoicing facilitation, adjustments for the platform economy, and a transition to a single EU VAT registration process. The opinion received 570 votes in favor, 17 against, and 52 abstentions. MEPs also endorsed a report addressing changes to VAT rules for taxable persons facilitating distance sales of imported goods, with 603 votes in favor, 23 against, and 10 abstentions.
The report suggests eliminating the EUR150 threshold for Import One Stop Shop (IOSS), extending the deemed supplier rule, and broadening the application of ‘special arrangements.’ Additionally, MEPs called for improved cooperation against VAT fraud and enhancements to the VAT Information Exchange System (VIES) VAT number validation functionality. They recommended Commission support for national tax authorities to ensure operational electronic systems by January 1, 2030.
