EU adopts VAT in the Digital Age reforms (Council Directive 2025/516)
Updated: 4 days ago
On 12 February 2025, the European Parliament gave its consent to the amendments to the VAT Directive for the digital age. The Council adopted them as Council Directive (EU) 2025/516 of 11 March 2025 amending Directive 2006/112/EC as regards VAT rules for the digital age, published in the Official Journal on 25 March 2025.
What does the directive change, and from when?
From 1 January 2027 (Article 2): amendments including the rules for electronic interfaces that facilitate distance sales of imported goods (Article 14a of the VAT Directive).
From 1 July 2028 (Article 3): amendments including a rule under which platforms that facilitate short-term accommodation rental (uninterrupted rental to the same person for at most 30 nights) or passenger transport by road within the EU are deemed to have received and supplied those services themselves, unless the provider has given them a VAT identification number and declared that it will charge the VAT due (new Article 28a). Member States apply this rule at the earliest from 1 July 2028 and at the latest from 1 January 2030 (Article 7(3)).
From 1 July 2030 (Article 5): amendments including digital reporting requirements and electronic invoicing in a structured format for intra-EU transactions.
Member States that already had a domestic digital real-time reporting obligation, or the authorisation or legislation for one, before 1 January 2024 apply certain of these measures, in so far as domestic electronic invoicing and reporting are concerned, by 1 January 2035 (Article 7(5)).
Where does the directive come from?
The directive is part of the “VAT in the Digital Age” (ViDA) package. The European Commission presented the proposal on 8 December 2022 (COM(2022) 701 final).
Sources
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Last updated: 3 November 2026. This article is for information only and does not replace an analysis of your specific situation. Drafted with AI assistance; references were verified against the primary sources.
