VAT in the Digital Age (ViDA) package is APPROVED!

At today’s ECOFIN meeting, EU finance ministers were able to reach an agreement on the VAT in the Digital Age (ViDA) proposal, approving in full the compromised package.
Agreement on two of the three main pillars of ViDA – ‘Single VAT registration’ & ‘Digital reporting and E-Invoicing’ – already had consensus, after compromises to the original ViDA text were made by the EU Commission, back in May 2024.
Despite this, the Estonian administration continued to object to the pillar concerning the ‘Platform Economy’, specifically around the mandatory application of the ‘deemed supplier’ rule for platforms and its negative impact on SME’s, which had held up the overall approval of the ViDA package, until now.
Following further concessions made by the Commission in this area last week – allowing member states to opt out of this rule for its SME businesses – Estonia confirmed that it was pleased with the compromise reached and accordingly withdrew its veto, meaning that all member states have given their full agreement to ViDA.
As a number of substantial amendments were made to the content of the original text in order to reach agreement, the necessary re-consultations will be conducted with the European parliament, before officially adopting ViDA.