As of 1 January 2026, businesses operating in the European Union are preparing for significant upcoming changes to value added tax (VAT) rules under the VAT in the Digital Age (ViDA) legislative package. ViDA is an EU-wide regulatory framework aimed at modernising the VAT system to better reflect digital business models, including e-commerce and the platform economy. The reforms focus in particular on VAT registration, invoicing, and VAT reporting, and will be implemented in stages between 2027 and 2035. 1. Expanded VAT special schemes and single EU VAT registration Under ViDA, the scope of VAT special schemes, including the One-Stop Shop (OSS), will be expanded. The schemes will also cover certain transactions that currently require local VAT registration, including: • Domestic sales of goods where the seller is not established in the Member State of consumption • Sales of goods installed or assembled • Sales of electricity, heating, and other energy products A new special scheme for own-goods transfers will be introduced, and the existing call-off stock rules will be abolished. In B2B transactions within the EU, reverse-charge VAT will be applied more broadly where the foreign seller is not established in the Member State of supply. This mechanism is already applied in Finland. These measures support the EU objective of reducing multiple VAT registrations and moving toward a more unified VAT registration system across Member States. The changes will generally apply from 1 July 2028, with consumer sales of electricity and other energy products applying earlier, from 1 January 2027. 2. VAT treatment of the platform economy ViDA introduces new VAT rules for electronic platforms facilitating: • Short-term accommodation services (up to 30 days), and • Passenger transport services Under the reform, platforms may become liable for VAT in situations where the underlying service provider is not VAT-registered. The objective is to ensure equal VAT treatment between platform-based services and traditional business models. These rules will apply optionally from 1 July 2028 and mandatorily from 1 January 2030. 3. Digital VAT reporting and mandatory e-invoicing for intra-EU trade ViDA introduces transaction-level digital VAT reporting based on mandatory electronic invoicing for cross-border B2B supplies within the EU. Key elements include: • Sellers must issue an e-invoice and report invoice data to the tax authority within 10 days of the supply or receipt of an advance payment • Buyers are generally required to report invoice data within 5 days of receipt • Member States may choose to exclude purchase invoices from mandatory reporting Mandatory e-invoicing and transaction-level VAT reporting for intra-EU trade will apply from 1 July 2030. At the same time, recapitulative VAT statements will be abolished. Member States may also introduce transaction-level reporting for domestic supplies, provided it is based on e-invoicing. National systems must be aligned with the EU framework by 2035.