“Viva la ViDA” was the European Commission’s take on introducing new VAT e-invoicing laws back in November 2024. Now, upon their implementation, organizations are not quite as positive – facing an uphill climb to reform their operations, processes, controls, ERP systems, and general tax customs. ViDA regulations will require firms to validate their account data in real-time and integrate with new systems for security and compliance.
Trustpair’s fraud prevention solutions verify vendor and payment details to help businesses comply with the new e-invoicing regulations. Request a demo to learn more!
What is ViDA and why does it matter?
ViDA stands for VAT In the Digital Age.
It’s a set of standards that was introduced in the European Union in 2024, but enacted in April 2025, aiming to regulate the way that VAT-registered businesses invoice each other and make payments within the region.
The new ViDA standards are important because they bring VAT reporting into real time; putting pressure on firms to adhere to the standards or otherwise risk fines and other penalties. Instead of operating poorly and relying on an auditor to clean up the mess before taxes are submitted, firms will instead have to implement better practices from the outset.
ViDA should modernize tax practices and standardise the way that businesses operate, reducing the risks associated with unreliability between invoice, supply and payment methods. It will also make it easier for VAT-registered businesses in each member state to partner and collaborate.
It’s part of a wider regulation called the ‘One Stop Shop’ (OSS) system, after a Mini One Stop Shop (MOSS) was trialled in 2021. This aims to ensure that firms within member states can complete all of their invoicing, supplier and reporting requirements at once, and in one platform.
What are the key changes from the previous invoicing laws?
Here are some of the biggest changes under ViDA:
- Mandated electronic invoicing
- Standardized invoice data
- Digital signatures
Electronic Invoicing
One of the most impactful changes is that ViDA makes electronic invoicing mandatory for compliant organizations. Companies must rely on an approved platform, transmitting their invoices through it for increased time-to-payment without placing company security at risk.
The approved OSS scheme integrates with government technologies to increase transparency – granting authorities with income and tax data immediately. This aims to reduce VAT fraud by guaranteeing real-time reporting and make the entire tax process more efficient, removing the need for multiple platforms.
Standardized invoice data
Another key change is that invoices for companies subject to VAT must include certain data categories, like:
- Invoice number
- VAT amount
- Buyer point of contact and company details
- Sales point of contact and company details
- Tax point date (date on which the VAT becomes chargeable on a transaction)
Previously, companies could choose which registration information they included on invoicing, and in some instances, suppliers would forgo payments account information altogether for security reasons – after all, it should already be in their partner’s vendor management database.
The new rules aim to reduce the likelihood of any charge discrepancies – especially in international transactions.
Digital signatures
The new pillar for authentication includes digital signatures as part of the proposal – which not only certifies the details within the invoice, but should also signal that the document hasn’t been edited or tampered with, after the fact.
This acts as a security tool, but it should also aid organizations in their compliance to the rule more generally because, by attaching a leader’s name to the invoice, it promotes accountability.
What are the implementation timelines for ViDA?
The new ViDA invoicing laws are being implemented in 2025, with the package officially adopted by the EU on the 11th of March. Here is the timeline for implementation:
|
Time |
Action |
|
March 2025 |
Member states may begin to implement mandatory e-invoicing at their discretion |
|
January 2027 |
The one stop shop expands to include cross border transactions of energy (gas, electric, heating and cooling) |
|
July 2028 |
The one stop shop includes optional VAT collection at source, and expands to B2C payments |
|
July 2030 |
Mandatory enforcement of VAT collection and remittances at source for accommodation and transport services |
|
January 2035 |
All EU state reporting rules must align with ViDA standards |
Enterprise businesses that operate across different jurisdictions will need to keep up with the varying rules, depending on where they operate and what goods and services they deal in.
How to prepare your business for the ViDA regulation?
ViDA regulations are being phased in slowly compared to a lot of the other EU regulations in recent years, but it’s definitely worth assessing the main changes under these requirements and how they will affect your business.
Start by analysing your transactions; what percentage of business is currently being performed within the EU, compared to other regions, for example?
With Trump’s new import tax tariffs, you may be anticipating the percentage of EU business to grow as you start ordering domestic supplies, rather than ordering from US businesses.
Next, you’ll need to create a change plan – looking at what changes will need to be made before you are fully compliant with the regulations. A change transformation is likely to require significant investment, especially as you onboard systems that comply and integrate with the One Stop Shop.
One such platform could be Trustpair, a solution with the capabilities to validate the data and secure invoicing processes in real-time. Trustpair’s fraud prevention mission aligns well with ViDA regulations by verifying vendor information and payment details, helping businesses stay compliant and protecting them against invoice-related fraud. Book a demo.
ViDA invoicing regulations will bring key changes
VAT in the Digital Age (ViDA) is a new EU regulation aimed at standardizing the way that businesses subject to VAT format, send and secure their invoices against cybercrime. With a phased approach between 2025 and 2035, companies have a while to properly implement their changes for compliance. Working with Trustpair can aid you in validating and securing invoice data.
