EU VAT Changes 2026: What Every Seller Needs to Know
EU VAT Changes 2026: What Every Seller Needs to Know
The ViDA reform is the biggest overhaul of EU VAT in decades. Here's what's changing, when it hits, and what your business needs to do now.
The Short Version
The European Union's VAT in the Digital Age (ViDA) package was formally adopted on 11 March 2025 and entered into force on 14 April 2025. It's a three-pillar reform that will reshape how businesses handle VAT across Europe — from mandatory e-invoicing and real-time digital reporting to new obligations for online platforms and a simplified single VAT registration system.
The changes roll out progressively between 2025 and 2035. But if you sell goods or services across EU borders, the time to prepare is now — not when the deadlines arrive.
Why This Reform Exists
The EU's VAT system was designed for a pre-digital economy. The result? An estimated €89 billion VAT gap in 2022 alone — the difference between what member states should collect and what they actually receive. A significant portion of that loss is attributed to fraud in intra-EU trade.
ViDA aims to close that gap by leveraging digital technology: real-time transaction reporting, harmonized e-invoicing standards, and making platforms responsible for collecting VAT in sectors where tax compliance has historically been low.
The European Commission estimates these reforms could help member states recover up to €18 billion annually in lost VAT revenues.
Legal basis: Council Directive (EU) 2025/516 amending Directive 2006/112/EC; Council Regulation (EU) 2025/517 amending Regulation (EU) No 904/2010; Council Implementing Regulation (EU) 2025/518 amending Implementing Regulation (EU) No 282/2011. All published in the Official Journal of the EU on 25 March 2025 (OJ L, 2025/516, 2025/517, 2025/518).
The Three Pillars of ViDA
Pillar 1: Digital Reporting Requirements (DRR) & E-Invoicing
This is the most technically significant change. By 1 July 2030, all intra-EU B2B transactions will require:
- Structured e-invoices based on the European standard EN 16931 (a revised version adapted for B2B is expected to be published by May 2026)
- Near real-time digital reporting of invoice data to tax authorities — replacing the current EC Sales List (ESL/recapitulative statement) system
- Invoices must be issued within 10 days of the taxable event for cross-border transactions (reduced from the current timeframe)
- Starting in 2028, invoices will need to include the supplier's IBAN for payment traceability
What's already changed: Since 14 April 2025, EU member states no longer need a derogation from the European Commission to introduce mandatory domestic e-invoicing. Suppliers can also issue e-invoices without requiring customer consent (Article 232 of the VAT Directive has been deleted).
Domestic alignment deadline: Member states that already have domestic real-time reporting systems must align them with the EU standard by 1 January 2035.
Several countries are moving fast. Belgium mandated B2B e-invoicing from 1 January 2026. Spain, Lithuania, and others have published draft transposition legislation.
Pillar 2: Platform Economy
Online platforms facilitating short-term accommodation rentals (stays of 30 days or less) and passenger transport by road will become the "deemed supplier" for VAT purposes. This means the platform — not the individual host or driver — will be responsible for collecting and remitting VAT when the underlying service provider does not charge it.
Timeline:
- 1 July 2028: Member states must have transposed the rules. Early adoption is voluntary from this date.
- 1 January 2030: Mandatory application across all EU member states.
Key exceptions: Member states may opt to exclude underlying suppliers who either (a) provide their VAT identification number to the platform and declare they will report VAT themselves, or (b) benefit from the EU's SME VAT exemption scheme. This opt-out is available for a period of ten years.
This pillar directly impacts platforms like Airbnb, Booking.com, Uber, Bolt, and their hosts and drivers.
Pillar 3: Single VAT Registration (SVR)
The goal is to reduce the number of VAT registrations a business needs across the EU. Key changes:
- Expansion of the One-Stop Shop (OSS) to cover all B2C supplies of goods and services, including supplies from warehouses in other member states and transfers of own goods
- Mandatory reverse charge for B2B supplies where the supplier is not established in the member state where VAT is due (harmonization of Article 194 rules)
- Expansion of Import One-Stop Shop (IOSS) with improved controls and anti-fraud measures
Timeline: Most SVR measures take effect from 1 July 2028. OSS expansion for gas, electricity, heating, and cooling supplies starts 1 January 2027.
The practical impact is significant: a business selling across 10 EU countries could potentially manage all its VAT obligations through a single registration instead of maintaining separate registrations in each country.
Complete Implementation Timeline
| Date | What Changes |
|---|---|
| 14 April 2025 | ViDA enters into force. Member states can mandate domestic e-invoicing without derogation. Customer consent for e-invoicing removed. |
| 1 January 2027 | OSS expanded for energy supplies. Minor IOSS clarifications. |
| 1 July 2028 | Single VAT Registration reforms (OSS extension, mandatory reverse charge). Platform economy rules available for early adoption. |
| 1 January 2030 | Mandatory platform economy "deemed supplier" rules across all member states. |
| 1 July 2030 | Mandatory DRR and e-invoicing for all intra-EU B2B cross-border transactions. EC Sales List abolished. |
| 1 January 2035 | Domestic digital reporting systems must align with EU standards. |
Country Spotlight: France
France is one of the most aggressive movers on ViDA-aligned reforms — and if you do business in France, the changes are not theoretical. They're happening now.
Mandatory e-invoicing: September 2026
France's domestic B2B e-invoicing and e-reporting mandate — known as réforme de la facturation électronique — launches 1 September 2026 for large and mid-sized companies (ETI). SMEs and micro-enterprises follow on 1 September 2027. However, all companies must be able to receive e-invoices from 1 September 2026, regardless of size.
This makes France one of the first EU countries to operationalize a ViDA-compatible domestic e-invoicing system at scale — years ahead of the EU-wide July 2030 deadline.
How it works
Every domestic B2B invoice must flow through a state-approved platform (Plateforme de Dématérialisation Partenaire, or PDP) or via the public portal Portail Public de Facturation (PPF, built on Chorus Pro). Invoices must use one of three EN 16931-compliant formats: Factur-X (hybrid PDF/XML), UBL 2.1, or CII.
In January 2026, the French tax authorities published the official list of registered approved platforms — a major milestone signaling that the infrastructure is ready.
Pilot phase: February–August 2026
A production-environment pilot launched on 23 February 2026, using real business data (no test data allowed). Only platforms that have completed end-to-end testing with the PPF are eligible to participate. This six-month pilot is designed to catch and resolve operational issues before the September go-live.
Simplifications announced
In August 2025, the French government announced several welcome simplifications:
- The obligation to e-report international incoming invoices at line-item level has been removed for purchases from both EU and non-EU suppliers. This exemption remains in effect until the EU-wide DRR mandate kicks in on 1 July 2030.
- Blank e-reports are no longer required when no taxable transactions occur in a period.
- Non-established taxpayers (entities only VAT-registered in France without being established there) have their e-reporting obligations postponed to September 2027.
Penalties
The penalty regime takes effect after 1 January 2027. Failure to issue a compliant e-invoice can result in a fine of €15 per invoice, capped at €15,000 per year. First infractions may be exempt if corrected promptly.
What this means for Veroskat clients
If you're a non-EU business with French VAT obligations and Veroskat handles your fiscal representation, we're tracking these changes closely. We'll ensure your invoicing workflows are compliant with the new PDP requirements and EN 16931 formats — and that you benefit from the non-established entity deferrals where applicable.
Key sources: French Finance Law for 2024 (Article 91); DGFiP guidance on approved platforms (January 2026); EY Tax Alert on French simplification measures (September 2025); Sovos regulatory update on pilot phase (December 2025).
Country Spotlight: Sweden
Sweden is taking a more deliberate approach to ViDA implementation — but the direction is clear, and businesses operating in Sweden should prepare for significant changes.
Current status: investigation launched
On 5 February 2026, the Swedish Ministry of Finance appointed a special investigator (särskild utredare) under committee directive Dir. 2026:9 to examine how Sweden should transpose the ViDA Directive into national law. The investigator's mandate covers three critical questions:
- Which legislative amendments are needed to implement the EU's cross-border digital reporting and e-invoicing requirements?
- Should Sweden also mandate e-invoicing and digital reporting for domestic B2B transactions — and if so, to what extent?
- How should the Swedish Tax Agency (Skatteverket) use the transaction data collected under the new system?
The final report, including legislative proposals, is due by 30 November 2027 — giving Sweden roughly two and a half years before the July 2030 EU-wide DRR deadline.
Skatteverket supports mandatory e-invoicing
In its formal consultation response to the ViDA proposal, Skatteverket stated that it supports ViDA and favors a national domestic e-invoicing mandate — not just compliance with the cross-border requirements. This is a significant signal. Sweden's tax authority sees domestic e-invoicing as a tool to improve VAT compliance, reduce fraud, and modernize reporting.
In mid-2025, Skatteverket ran a nationwide business survey to gauge attitudes toward e-invoicing and gather feedback on readiness and concerns. The Confederation of Swedish Enterprise (Svenskt Näringsliv) has also urged the government to establish a broad expert panel including representatives from the business community.
Sweden's strong Peppol foundation
While B2B e-invoicing isn't mandatory yet, Sweden is already one of the most digitally mature markets in Europe. Key facts:
- B2G e-invoicing has been mandatory since April 2019 under the Act on Electronic Invoices in Public Procurement (Lag 2018:1277), implementing the EU's e-invoicing directive.
- All public sector entities use the Peppol BIS Billing 3.0 standard, which is EN 16931-compliant.
- B2B e-invoicing is already widely adopted voluntarily — Swedish businesses have been exchanging electronic invoices since 2008.
- Peppol is the expected foundation for any future domestic mandate.
This existing infrastructure means that when a mandate comes, Swedish businesses will be better positioned than most to comply — but the regulatory and technical details still need to be worked out.
Temporary VAT rate change: food
Separately from ViDA, Sweden has proposed a temporary reduction of VAT on food from 12% to 6% under bill Prop. 2025/26:55. If approved, the reduced rate applies from 1 April 2026 through 31 December 2027. This doesn't relate directly to ViDA, but it's a significant development for businesses in the food sector operating in Sweden.
What this means for Veroskat clients
If you're VAT-registered in Sweden, there's no immediate domestic e-invoicing mandate — but the direction of travel is clear. We recommend starting to ensure your invoicing systems can produce Peppol BIS 3.0 / EN 16931-compliant invoices, as this will almost certainly become the Swedish standard. For cross-border intra-EU transactions, the July 2030 deadline applies regardless of Sweden's domestic timeline.
Key sources: Swedish Ministry of Finance, Dir. 2026:9 (5 February 2026); Skatteverket consultation response on ViDA; Swedish Act on Electronic Invoices in Public Procurement (Lag 2018:1277); Thomson Reuters / Pagero regulatory update (February 2026); VATupdate analysis (February 2026).
What This Means for Your Business
If you sell B2B across EU borders
You have until July 2030 to implement structured e-invoicing (EN 16931) and real-time digital reporting for cross-border transactions. But don't wait — your customers in countries with early domestic mandates (Belgium, Spain, and likely others) may require e-invoices sooner.
Action now: Start evaluating e-invoicing solutions and ensure your ERP or accounting software can generate EN 16931-compliant invoices.
If you sell via online platforms
If you're a host on Airbnb or a driver on Uber/Bolt, your platform will likely start handling VAT on your behalf by 2028–2030. This could simplify your compliance — but it could also affect your ability to recover input VAT, depending on how your member state implements the opt-out provisions.
Action now: Review your VAT registration status and discuss with a tax advisor whether you should proactively provide your VAT number to the platform.
If you sell B2C across multiple EU countries
The expanded OSS is good news. Once the SVR reforms take effect in July 2028, you may be able to consolidate multiple country-specific VAT registrations into a single OSS filing.
Action now: Map out your current VAT registrations and identify which ones could be replaced by OSS once the reforms are in place.
If you're a non-EU seller into the EU
The mandatory reverse charge for non-established suppliers (from July 2028) and IOSS improvements should simplify your obligations. However, if you store inventory in the EU (e.g., Amazon FBA), you'll still need local registrations — and you may need fiscal representation in certain countries.
Action now: Ensure your fiscal representative and compliance setup accounts for the upcoming changes.
How Veroskat Can Help
ViDA is complex, but you don't need to navigate it alone. Veroskat provides:
- Fiscal representation in France and Sweden for non-EU businesses
- VAT registration and compliance management — we handle your declarations, Intrastat, and ESL reporting (and the transition when ESL is replaced)
- AI-powered VAT advisory — get instant answers to your ViDA questions through our AI VAT Advisor
- Ongoing monitoring — we track member state transpositions so you don't have to
Whether you need help preparing for e-invoicing, understanding how the platform economy rules affect your business, or simplifying your VAT registrations across Europe — we're here.
Sources & References
Council Directive (EU) 2025/516 of 11 March 2025 amending Directive 2006/112/EC as regards VAT rules for the digital age — EUR-Lex
Council Regulation (EU) 2025/517 of 11 March 2025 amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age — EUR-Lex
Council Implementing Regulation (EU) 2025/518 of 11 March 2025 amending Implementing Regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes
European Commission — VAT in the Digital Age (ViDA) — Taxation and Customs Union
European Commission — Adoption of the VAT in the Digital Age package, 11 March 2025 — Press release
European Commission — 2023 VAT Gap Report: EU countries lost €89 billion in VAT revenues in 2022, with conservative estimates attributing one-quarter to fraud linked to intra-EU trade.
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (the "EU VAT Directive") — as amended by Directive 2025/516.
PwC Luxembourg — VAT in the Digital Age (ViDA): The future of VAT — PwC
French Finance Law for 2024, Article 91 — Establishes the e-invoicing and e-reporting mandate timeline (1 September 2026 for large/mid-sized companies, 1 September 2027 for SMEs/micro-enterprises).
DGFiP (Direction Générale des Finances Publiques) — List of registered approved platforms (Plateformes de Dématérialisation Partenaire), published January 2026 — Service-Public.fr
EY Global Tax Alert — "French Government announces simplification measures as part of September 2026 e-invoicing mandate" (September 2025) — EY
Sovos Regulatory Update — "France: E-invoicing Pilot Phase Announced for Early 2026" (December 2025) — Sovos
Swedish Ministry of Finance — Dir. 2026:9 (5 February 2026) — Committee directive launching the inquiry into ViDA transposition and domestic e-invoicing in Sweden — regeringen.se
VATupdate — "E-Invoicing and Digital VAT Reporting Reform in Sweden" (5 February 2026) — VATupdate
Thomson Reuters / Pagero — Sweden regulatory updates on ViDA implementation — Pagero
Swedish Act on Electronic Invoices in Public Procurement — Lag (2018:1277) om elektroniska fakturor till följd av offentlig upphandling
Swedish bill Prop. 2025/26:55 — Proposed temporary VAT reduction on food from 12% to 6% (April 2026 – December 2027).
This article is for informational purposes only and does not constitute legal or tax advice. For guidance specific to your business situation, contact Veroskat.
Last updated: February 2026