EU Member State Approves Draft Bill to Transpose First Part of VAT Digital Economy Directive
Swathy
Published on Nov 28, 2025/1 min read
EU Member State approves draft bill to transpose first part of the ViDA directive, updating VAT law to modernize digital economy compliance and e-invoicing standards.
The Council of Ministers has approved a draft bill to amend VAT Law 37/1992, marking the first step toward implementing the EU’s new VAT rules for the digital economy under Directive (EU) 2025/516 (ViDA).
The ViDA directive builds on the e-commerce package of 2021 and aims to modernize VAT for digital transactions across the EU.
Key Objectives of the Directive
- Combat intra-Community fraud through standardized e-invoicing
- Simplify VAT registration, allowing businesses to operate with a single EU VAT ID
- Expand digital platform responsibilities, covering short-term accommodation and passenger transport services to address competitive imbalances
Implementation Timeline
- January 1, 2027: Phased introduction of key reforms
- July 1, 2028 & July 1, 2030: Major reforms take full effect
Additional Updates
- Extension of the non-Union scheme to more non-EU consumer services
- New representative requirements for non-EU businesses seeking VAT refunds
- Transitional regimes for call-off stock arrangements and energy supply via networks until full implementation
The draft bill represents a major step toward digital modernization of VAT, ensuring transparency, simplified compliance, and strengthened enforcement across EU Member States.
