European Union: Council adopted Regulation amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age

On 11 March 2025, the Council of the European Union adopted amendments to Regulation (EU) No. 904/2010 concerning VAT administrative cooperation arrangements needed for the digital age. The amendments are part of the broader VAT in the Digital Age (ViDA) package. The amendments to this Regulation are focused on administrative cooperation across Member States. The amendments establish a real-time central system for the exchange of VAT information (VIES), allowing daily data updates from Member States for the monitoring of cross-border transactions. Member States are obligated to upload VAT data to this central VIES, and platforms must retain VAT-related records and provide them to national tax authorities upon request. Furthermore, the amendments expand the One-Stop-Shop (OSS) system by integrating it into the central VIES, modifying VAT registration and reporting for cross-border transactions. VAT data will be retained for 10 years for audit purposes. The Regulation will be implemented in phases, with the central VIES expected to be operational by 2028 and automated reporting requirements for platforms introduced progressively until 2032. The Regulation will enter into force 20 days after its publication in the Official Journal of the EU, with direct applicability to Member States.