On 11 March 2025, the Council of the European Union formally adopted the ViDA reform package (covering a directive, a regulation and implementing regulation), concluding the legislative approval process. This milestone follows the European Parliament's vote on 12 February 2025 and the political agreement reached by ECOFIN Finance Ministers on 5 November 2024. The reforms, covering the three core pillars of ViDA, has been officially published in the EU Official Journal on 25 March 2025, and will enter into force on 14 April 2025.
While the regulations are directly applicable, the directive will have to be transposed into national law. With adoption complete, attention now turns to implementation. The European Commission is set to release Working Papers for each pillar, reflecting member state feedback gathered (expected by summer 2025). These documents will provide further clarity on implementing regulations, explanatory notes, and timetables, guiding businesses and tax authorities through the practical rollout of the reforms.
ViDA represents a significant step in modernising VAT rules, aligning them with the digital economy and the needs of the EU single market.
