The European Commission has published its 2026 Work Programme for the VAT in the Digital Age (ViDA) reform, marking the latest milestone in what is one of the most ambitious overhauls of the EU's tax system in decades. Here is a complete picture of where the programme stands today.
Background
The ViDA package was formally adopted by the EU Council on 11 March 2025 and published in the Official Journal on 25 March 2025, coming into force on 14 April 2025. It took nearly two and a half years from the Commission's initial 2022 proposal to reach adoption.
The reform has three core objectives: modernising the EU VAT system for the digital era, making it more resilient to fraud — particularly carousel fraud — and levelling the playing field between traditional businesses and the platform economy. The Commission estimates it will deliver between €172 billion and €214 billion in net benefits over ten years, including €51 billion in savings for businesses.
The Three Pillars
1. Digital Reporting Requirements (DRR) From 1 July 2030, cross-border B2B transactions will be subject to mandatory real-time digital reporting based on e-invoicing, which will become the default method of invoicing. This replaces the current recapitulative statement system and is expected to reduce VAT fraud by up to €11 billion per yearand cut administrative costs for businesses by over €4.1 billion annually. By 1 January 2035, Member States with existing domestic real-time reporting systems must align them with the EU-wide cross-border framework.
2. Platform Economy From 1 July 2028, platforms facilitating short-term accommodation rental and passenger transport services will become deemed suppliers — meaning they become responsible for collecting and remitting VAT when their underlying users, such as small businesses or individual providers, do not. Member States may optionally delay this to 1 January 2030.
3. Single VAT Registration (SVR) From 1 January 2027, the One Stop Shop (OSS) mechanism will be extended to additional B2C supplies, including the e-charging sector, reducing the need for businesses to hold multiple VAT registrations across Member States. From 1 July 2028, mandatory reverse charge for non-established suppliers will also come into effect, alongside the new Transfer of Own Goods module.
The 2026 Work Programme and Emerging Delays
The Commission published its 2026 Work Programme in May 2026, building on the Implementation Strategy released in September 2025. However, the programme is not simply a routine update. According to technical reporting, some implementing regulations have been pushed back by one quarter to accommodate delays in the publication of the European e-invoice standard (EN16931), now expected in Q2 2026. This delay specifically affects implementing regulations tied to the cross-border digital reporting system, which all Member State operators must ultimately comply with.
This was a risk the Commission had already flagged in its September 2025 Implementation Strategy, which identified delays in CEN's work on the EU e-invoicing standard as a potential — though then considered low-likelihood — implementation risk.
Key Legislative Milestones in 2026
At least six Commission Implementing Regulations are required to give full effect to ViDA. The most critical ones currently in progress include:
An implementing regulation on Article 263(4) governing the common electronic reporting message for cross-border transactions
Two regulations on the design of and access to the central VIES system
A regulation on securing the Import One Stop Shop (IOSS)
Two further regulations amending existing OSS/IOSS rules for the 2027 and 2028 entry dates
Draft explanatory notes covering all three pillars are in progress, with final versions expected by end of 2026 or early 2027.
IT Infrastructure
The Commission is developing a central VIES (VAT Information Exchange System) to underpin the DRR framework. Architecture specifications are to be approved in 2026, with full system development running through to 2030 and a testing phase with Member States beginning in January 2029 — leaving an 18-month window before the July 2030 go-live date. For the SVR pillar, two IT releases are planned: OSS version 7.7 going live on 1 January 2027, and the more substantial OSS version 8.0 going live on 1 July 2028.
Member State Transposition
Several Member States are already moving. Legislative transposition deadlines run from December 2026 through June 2030 depending on the article concerned, and the Commission has made clear it will launch automatic infringement proceedings against any Member State that fails to transpose the directive on time — including for IT system delays.
Full Implementation Timeline at a Glance
DateKey Milestone14 April 2025ViDA enters into force1 January 2027OSS extensions; IOSS/OSS clarifications effective1 July 2028Platform deemed supplier rules; SVR mandatory reverse charge begins1 July 2030Mandatory DRR and e-invoicing for cross-border B2B transactions1 January 2035Full domestic system convergence with EU-wide framework
