European Union: Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including implementation of digital reporting requirements and e-invoicing systems enter into force
Description
Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including implementation of digital reporting requirements and e-invoicing systems enter into force
On 1 January 2035, the Council Directive (EU) 2025/516 amending Directive 2006/112/EC under the VAT in the Digital Age (ViDA) package enters fully into force. In particular, Member States that had introduced national digital real-time transaction-based reporting obligations on or before 1 January 2024 applied the relevant provisions of the amended VAT Directive. These provisions encompass the obligation under Article 5(5) in conjunction with Article 218 requiring the acceptance of structured electronic invoices issued under national systems. They also include the obligation under Article 5(19), in conjunction with Articles 271a and 271b, which introduces real-time digital transaction-based reporting obligations for VAT purposes. These provisions will only apply in jurisdictions that have adopted national legislation, have been authorised under Article 395 or have not required authorisation before the cut-off date. The European Commission may propose to postpone this deadline if the interim evaluation under Article 271c identifies shortcomings.
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