ViDA

What it means

ViDA, short for VAT in the Digital Age, is an EU legislative package that modernises the VAT system and adapts it to the digital economy. It was adopted in 2025, and its individual parts take effect in stages over the following years.

The package has three main pillars. The first is digital reporting and mandatory e-invoicing for cross-border business-to-business transactions, with invoice data reaching the tax authority in near real time. The second is new rules for platforms in short-term accommodation and passenger transport, which in certain cases become liable for VAT instead of the underlying providers.

The third pillar extends the single VAT registration, the OSS system, so that companies selling in other EU countries need not register for VAT in each of them. The overall goal is to reduce VAT fraud and simplify administration for businesses operating in several countries.

How it works in practice

We advise clients trading with businesses in other EU countries to prepare for structured e-invoicing in good time. That means checking whether their invoicing or accounting software supports the European standard and can send and receive invoices automatically.

A related change will replace the current EC sales list with digital reporting at invoice level. Thanks to its VAT control statement with transaction-level reporting, Slovakia has experience here, but rules will be harmonised across the EU and the changes will affect domestic systems too.

For businesses in platform-based accommodation or passenger transport, we are tracking how the platform rules will translate into their obligations. The change may affect who accounts for VAT and how prices are calculated, and therefore their margins.

What to watch out for

Effective dates for the various parts are spread over several years, and member states may introduce some elements earlier for domestic transactions. Before any major software investment, check the current timetable and the Slovak transposition, as details are still being finalised.

The biggest risk is being unprepared. A company that must issue structured e-invoices from a certain date without a system to do so may struggle to invoice and get paid. The transition should be planned well ahead and tested.