What is ViDA?

ViDA, is short for VAT in the Digital Age. The European Commission has proposed ViDA as a framework aimed at modernising the existing VAT system to adapt to the digital landscape by 2028. There have been three drivers for this change, including:

• Reduction of VAT Gap,
• Simplification and increased efficiency of VAT compliance processes,
• Improved data analysis and financial forecasting.

ViDA endeavours to upload the effectiveness and fairness of value-added tax regulations in an era dominated by cross-border transactions and online commerce.