New VAT rules: ViDA Directive approved!

The Economic and Financial Affairs Council (ECOFIN) adopted the proposal ‘VAT in the Digital Age’ last year. These new rules aim to make VAT in the EU simpler and more resistant to fraud.

The EU member states, including the Netherlands, must now implement these rules.

ViDA: preventing fraud and simplifying rules

VAT fraud and cross-border tax evasion structures (including ‘carousel fraud’) result in billions in losses for the treasuries of the EU and its member states every year. Also, the rules are complicated and lead to a relatively high administrative burden for businesses. A new European directive has been in the works for a while now: the ‘VAT in the Digital Age’ proposal (also known as ViDA).

The approval of this directive will thoroughly overhaul the VAT system.

Main changes from 1 July 2028

Now that the directive has been approved, the EU member states must implement the rules in their national legislation.

The most important changes should in principle enter into force on 1 July 2028, although it is possible the Netherlands may change the rules sooner than that.

The ViDA Directive primarily concerns digital supplies of goods and services.

Timely preparation is required

Although it may be a while before the changes actually take effect, we advise (internationally operating) businesses to start preparing as soon as possible.

Get in touch with our partners at Baker Tilly who will be happy to help and advise you.