How will VAT in the digital age reforms impact businesses?

Potentially starting as early as 2024 businesses will begin to feel the impact of the VAT in the digital age (ViDA) reforms proposed by the European Commission (tinyurl.com/euvatindigage). With businesses in the EU and those trading with the continent needing to make some fundamental changes to remain compliant here are the answers to the most common questions we’ve been receiving to help make sure businesses are as prepared as possible.

What is the purpose of the ViDA reforms?

The primary reason the ViDA reforms were proposed was to narrow the VAT gap. Over the years European nations have lost hundreds of billions in uncollected indirect tax. In fact in 2020 alone the European Commission estimated that up to €93bn in revenue was lost. The ViDA reforms aim to introduce a more efficient and stricter system of e-invoicing which will...