Virtually all businesses trading in the EU will be affected in some way by ViDA. Some key groups include:

In short, if you sell within or into Europe, ViDA likely applies to you. The specific obligations (OSS, e-invoicing, platform VAT, etc.) will depend on your business model, but it's safe to assume most companies will need to make some changes to processes and systems under ViDA.

• EU-based B2B sellers: If your company is based in the EU and sells goods or services business-to-business across EU borders, you will need to adopt the new e-invoicing and digital reporting processes for those transactions. In other words, intra-EU B2B sales will have to be invoiced electronically and reported in real time to tax authorities.
• Domestic EU businesses: Even if you only sell within one EU country, ViDA can still impact you. While the 2030 mandate for e-invoicing is for cross-border B2B initially, many member states are likely to extend e-invoicing to domestic B2B transactions over time (to harmonize with the ViDA approach). Additionally, domestic B2C sellers may choose to use OSS for convenience.
• B2C and e-commerce sellers: For business-to-consumer sellers, ViDA's Single VAT Registration means you can opt into the OSS scheme and file one EU-wide VAT return for all your sales to consumers across Europe. This simplifies compliance, but note that if you use OSS you must comply with all its rules, including timely reporting of all sales through that portal. Also, importers selling to EU consumers will be required to use the IOSS for low-value goods, if not already.
• Digital platforms: Online platforms facilitating short-term accommodation or passenger transport (and potentially other services as definitions expand) face new obligations. Under ViDA, platforms must collect and remit VAT on transactions when their users (hosts, drivers, etc.) are not VAT-registered or are small suppliers beneath thresholds. In practice, if you run a marketplace in these sectors, you become the deemed supplier for VAT purposes when an individual provider isn't handling VAT themselves. Platforms will need to track these situations and handle VAT accordingly.
• Non-EU companies selling into the EU: Even if your business is based outside Europe, ViDA can affect you. For example, a US or Asian e-commerce company selling goods into the EU will likely need to register for OSS/IOSS to report VAT on those sales to EU customers. Likewise, non-EU providers of services may have new reporting obligations. In summary, many foreign businesses will have to adapt to use the EU's single VAT registration schemes and comply with e-invoicing if they want to continue serving EU markets without local establishments.

Failing to comply with ViDA by the deadlines could lead to serious consequences. The exact penalties will depend on each EU country's implementation, but generally: you could face hefty fines for not issuing e-invoices or not submitting required reports on time. In some countries, invoices that are not submitted through the official platform may be considered invalid for VAT purposes, meaning you (or your customer) might lose the right to deduct that VAT or even be prohibited from executing certain transactions. Non-compliance will almost certainly trigger audits or investigations from tax authorities, since the new systems will flag gaps (for example, if you don't report transactions that your trading partners do). In the worst case, persistent non-compliance can lead to business disruptions - e.g. authorities might block your access to OSS or IOSS schemes, making it very difficult to continue cross-border sales. In summary, not being ViDA-ready risks financial penalties and operational downtime, whereas preparing in advance ensures a smooth transition and continuous trade without issues.

Start by assessing your current invoicing and VAT reporting workflows against the upcoming ViDA requirements. Key preparation steps include:

By taking these steps now, you'll avoid scrambling at the eleventh hour. The goal is to have your systems and processes ViDA-ready at least several months before each mandate kicks in. Early preparation means when July 2028 and 2030 arrive, compliance will be business-as-usual for you.

• Implement an e-invoicing solution: You'll need the ability to issue structured e-invoices (in XML/UBL format) and transmit them to tax authorities in real time. Ensure your billing or ERP system can generate invoices in the required format (or plan to use an intermediary platform like Taxilla to do so).
• Upgrade data capture in ERP: ViDA's digital reporting means capturing more data per transaction (e.g., buyer's VAT ID, invoice date, payment details, etc.). Verify that your ERP or accounting software is recording all the fields needed for the new reports. You may need to add fields or improve data quality to meet the detailed reporting specs.
• Register for OSS/IOSS where applicable: If you sell B2C to multiple countries and aren't using OSS yet, consider registering for it (and IOSS for imports) ahead of ViDA's rollout. This will simplify your VAT filings. Even if you wait until it's mandatory, understanding the process and requirements now will save time later.
• Train your teams: Educate your finance, accounting, and tax teams on the ViDA changes. They should understand, for example, when your platform must start charging VAT, how the 10-day reporting rule works, and what the new invoicing standards are. Training ensures your staff can adapt your compliance processes correctly and identify any issues early.
• Engage a technology partner: ViDA compliance can be complex, so consider partnering with a RegTech provider like Taxilla early in the process. We offer pre-configured ViDA compliance capabilities that you can test with your transactions well before the deadlines. By onboarding a solution in advance, you can run pilot tests, catch integration issues, and go live smoothly when required—avoiding a last-minute rush.

Taxilla provides an end-to-end "digital VAT co-pilot" for all aspects of ViDA. Our platform automates the new processes so you don't have to worry about the technical details. Here's how Taxilla covers your compliance needs:

• Real-time e-invoice exchange: For every sale that requires an e-invoice under ViDA, Taxilla generates the invoice in the correct format and sends it to the tax authority on your behalf. It tracks the submission and ensures the invoice is acknowledged by the authority. You'll know every required invoice is delivered and compliant.
• Automated digital VAT reports: The platform automatically prepares the new digital VAT reports (the transactional reports that will replace recapitulative statements). Whether it's an intra-EU B2B sale that needs reporting within days, or a quarterly OSS return for your B2C sales, Taxilla compiles and produces the report from your data. It's ready for filing without you building spreadsheets or manual summaries.
• Country-specific logic built-in: Each EU country has its own rules - different invoice data fields, formats, thresholds, etc. Taxilla knows all these specifics. It validates your transaction data against the rules of the relevant member state and formats submissions accordingly. This saves you from having to become an expert in 27 different systems; Taxilla handles it in the background.
• OSS calculations and filings: If you use the One Stop Shop, Taxilla will aggregate your sales by country, apply the correct VAT rates, and generate the OSS return for you each period. You simply review the compiled return and Taxilla can even file it electronically with the authorities. What might take a team days to reconcile manually is done in seconds, with full accuracy.
• Platform VAT compliance: For marketplace operators, Taxilla segregates your platform's transactions that fall under the new rules (for example, booking fees where the host isn't VAT-registered). It then applies the platform economy VAT rules: generating invoices for those transactions, collecting the VAT, and including them in the appropriate VAT return. Essentially, the system takes over the burden of figuring out when and how to account for VAT on third-party sales facilitated by your platform.

In short, Taxilla acts as a digital VAT compliance hub that automates the heavy lifting of ViDA. You maintain oversight through a dashboard and alerts (for instance, notifications of any invoices that failed or any data validation issues), but 95%+ of the process is handled automatically. This allows your team to remain confident and in control without having to manually juggle new complex compliance tasks - Taxilla has you covered.

Absolutely. ViDA is a multi-year initiative, and Taxilla is committed to continuous updates throughout this journey. We have a dedicated regulatory watch team that monitors European Commission updates, new technical specifications, and each Member State's local legislation. Whenever there's a change - say a new e-invoice schema, an additional data field required, or an adjustment to an OSS rule - our team updates the platform well ahead of the effective date. These updates are delivered seamlessly via the cloud to all our customers: you don't need to install anything or pay for extra services. (We usually provide a sandbox or testing environment for new features so you can try them out before they go live.) We also proactively notify you of upcoming changes and provide any guidance on actions you might need to take on your side, though typically minimal. With Taxilla, you won't need to worry about scrambling to meet new requirements or investing in custom development to keep up with ViDA - all those regulatory changes are handled for you as part of our service. You can trust that your compliance solution will always reflect the latest rules, now and in the future, so you stay ViDA-compliant without hassle.