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ViDA package approved by the European Union

On 11 March 2025, the European Union adopted the ViDA (VAT in the Digital Age) Package, which introduces a number of changes aimed at simplifying and automating VAT-related processes, as well as increasing transparency and efficiency in business transactions.  

These changes will affect the way businesses manage their tax obligations, especially in the context of electronic invoicing and the exchange of data between companies and tax administrations.

Read more about ViDA

Key elements of the ViDA (VAT in the digital age) package:

1. Mandatory e-invoicing
According to new regulations, from 2028, businesses in the EU will be required to use e-invoices to replace traditional paper invoices. E-invoicing aims to simplify tax processes, reduce the risk of errors and ensure better data quality. Electronic invoices will have to meet certain technical requirements, making it easier for tax administrations to monitor transactions in real time.

2. Tax process automation
The VAT in the Digital Age package also envisages the introduction of more advanced automation in the exchange of tax data. Through the use of modern technologies such as EDI (Electronic Data Interchange), businesses will be able to automatically send transaction data to the tax administration. Such a system will allow faster verification of transactions and enable easier management of tax obligations internationally.

3. Increased international cooperation
The reform also aims to promote international cooperation between EU member states. The revised rules will facilitate the exchange of tax data between countries, which will enable better monitoring of cross-border transactions and reduce the risk of tax fraud. With the new system, tax administrations will be able to exchange information on transactions on an ongoing basis, which will improve the transparency of the tax system in the EU.

4. Reduction of costs and administrative burden
By digitalising and automating processes, businesses will be able to significantly reduce the costs associated with handling VAT processes. E-invoicing and the automatic transfer of data to tax administrations will reduce the time spent on manual processes, allowing companies to save on operational costs and human resources.

ViDA package timeline

According to the adopted package, changes related to e-invoicing and VAT digitalisation will be implemented gradually. Here are the key dates from the timetable:

2025: Start implementing the ViDA (VAT in the Digital Age) system, which will automate the exchange of VAT data.

2026: Increased obligations to exchange data and send electronic invoices.

2028: Mandatory e-invoicing for all businesses in the EU.

After 2028: Full automation of VAT data exchange processes and increased integration with national treasury systems.

How does EDITEL Polska support companies in adapting to change?

At EDITEL, we have specialised for years in providing Electronic Data Interchange (EDI) and e-invoicing solutions that allow companies to fully adapt to the changing tax regulations in EU.

Feel free to contact us if you would like to learn more about how our EDI solutions can help your company adapt to the upcoming changes and fully exploit the potential of digitisation.

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