The Vida package is underway, which opens up to the digitization of VAT. Italy, pioneer of e–deal, will no longer have to ask for extensions in Brussels.
Electronic billing arrives the European turning point, after two years of waiting. From Monday 14 April the first piece of the Vida package comes into forcethe modernization of VAT in the digital age. And for Italy, a pioneer since 2019 of the obligation of electronic invoicing, it means being able to say goodbye, after years, to the need to constantly ask for extensions in Brussels to continue applying it.
Next week marks the beginning of a new era for community taxation with the entry into force of the Vida – Vat in the Digital Age package. The goal is clear: digitize, simplify and make the collection of VAT more efficient, fighting the tax evasion that continues to be a problem in many countries. It is a directive and two regulations that have been questioned for years and which, approved in March, now become active and change the rules on electronic invoicing, VAT registration and responsibility of digital platforms. It is a transformation that provides for the entry into force of the various transformations in stages, from now to 2030.
The first change concerns electronic billing in national transactions. To date, each country that wanted to introduce the obligation of the e-business had to obtain a specific authorization from Brussels. With Vida, this constraint fails: from 14 April 2025 the Member States will freely be able to impose the obligation to invoice national electronic invoicing, without having to request derogations or preventive authorizations. This means that each state will be able to independently manage the obligation of digital billing, while maintaining common standards for data, formats and transmission of electronic invoices, thus guaranteeing interoperability and transparency at European level.
Italy is already a step forward. In fact, it was among the pioneers, having introduced the generalized e-account obligation in 2019. Thanks to Vida. Rome will no longer have to periodically renew the request for extension granted by Brussels (the current deadline was set at 2027) and will be able to expand its own system independently, also including new categories of subjects. For now, invoices in the health sector are excluded, for privacy reasons.
The other significant change concerns the impact on the digital economy and cross -border services, with Concrete effects on tourism, short rents and transport. Platforms such as, for example, Airbnb or Uber will be obliged from July 2030 will have to collect and pay VAT on behalf of the service providers who do not do it directly. The platforms will therefore become tax managers, in the event that the owner of the property or the driver do not provide a valid VAT number. Consequences? A simplification for small operators, who will no longer have to register for VAT, and a guarantee for the states that the tax is actually reworked.
The goal is to make competition between traditional and digital operators more equitable. Another novelty is the introduction of a single VAT registration for companies that sell goods or services to consumers in different European countries. With a single identification number, the operator will be able to manage their VAT obligations throughout the union through a digital portal, without having to make separate recordings in each state. This represents a step towards the single digital market, expected for years by economic operators.
Behind the reform there is also the need to reduce the VAT gap, that is, the difference between what should be collected and what is actually met. According to the most recent data of the European Commission, in 2022 The gap was 89 billion euros, equal to 7% of the potential revenue. The Vida Package for Italy is the recognition of the e-business model, which has made school in Europe. But it is also a challenge to recover that 10% of revenue still missing.
