Finland's Tax Administration has published implementation details for the EU's ViDA (VAT in the Digital Age) package, which will modernise VAT systems across the EU through phased reforms between 2028 and 2035, with some elements starting as early as 2027.
Expanded One-Stop Shop coverage
The OSS special schemes will extend to cover additional B2C sales including goods sold locally where the seller is not established in the consumption member state, goods sold with installation or assembly, and electricity, heating and other energy products. These changes take effect from 1 July 2028, with energy products covered from 1 January 2027.
A new special scheme for own goods transfers will be introduced, replacing the current call-off stock arrangements. Cross-border B2B transactions will extensively adopt the reverse charge mechanism where foreign sellers are not established in the country of sale.
Platform economy VAT rules
Electronic platforms facilitating short-term accommodation (maximum 30 days) or passenger transport services may become liable for VAT collection when service providers are not VAT-registered. The measure will be voluntary from 1 July 2028 and mandatory from 1 January 2030.
Digital VAT reporting and e-invoicing
EU cross-border B2B transactions will require European standard electronic invoices and real-time VAT reporting. Sellers must issue invoices and report transaction data within 10 days of sale or advance payment receipt. Buyers must generally report invoice data within 5 days of receipt, though member states may exempt purchase invoice reporting.
The digital reporting system becomes mandatory for cross-border transactions from 1 July 2030, replacing VAT recapitulative statements. Member states may extend transaction-based reporting to domestic transactions, with national systems required to align with EU standards by 2035.
Context
The ViDA package represents the most significant VAT system modernisation in decades, responding to digitalisation challenges in e-commerce and platform economies. Finland's Ministry of Finance will prepare national legislation to implement the directive requirements, while the European Commission continues developing technical guidance for the new systems.
