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VAT in the Digital Age (ViDA): what changes for e-invoicing (and what doesn't)

ViDA (VAT in the Digital Age) is the EU VAT reform bringing e-invoicing and digital reporting across the Union. Learn the three pillars, the timeline to 2035, and what really changes for businesses — with Italy already ahead thanks to its SDI system.

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ViDA (VAT in the Digital Age) is the EU VAT reform that brings e-invoicing and digital data reporting across the Union. It was adopted on 11 March 2025 and rolls out gradually through to 2035. For anyone already invoicing in Italy via SDI, almost nothing changes for domestic transactions: the real impact concerns cross-border transactions and arrives from 2030.

What ViDA is

ViDA is a package of directives and regulations designed to modernise the EU VAT system, reduce fraud, and simplify compliance for businesses operating across several member states. It isn’t a single deadline but a progressive reform: obligations enter into force in stages spread between 2025 and 2035.

Italy has a head start: it is among Europe’s most advanced countries here, because mandatory e-invoicing via the Sistema di Interscambio has been in force for years. Much of what ViDA asks of other states is already reality here.

The three pillars of ViDA

PillarWhat it introduces
1. Digital Reporting Requirements (DRR)Structured e-invoicing and near-real-time digital reporting for cross-border B2B transactions between EU countries
2. Platform economy”Deemed supplier” rules: short-term accommodation and passenger transport platforms become liable for VAT on certain transactions
3. Single VAT registrationAn extended One-Stop Shop (OSS) to avoid having to register for VAT in every state where you operate

The timeline that matters to you

DateWhat happens
April 2025Entry into force. Member states can mandate domestic e-invoicing without asking the EU for a derogation (Italy already did)
January 2027Technical clarifications to the One-Stop Shop (OSS) and IOSS
July 2028New platform rules (deemed supplier) and the start of single VAT registration
July 2030Digital reporting and structured e-invoicing become mandatory for cross-border B2B intra-EU transactions
January 2035National reporting systems (such as SDI) must align with the EU standard

What really changes for an Italian business

There are two worlds to separate.

Domestic transactions (within Italy). Practically nothing in the short term: you keep issuing e-invoices via SDI as you do today. By enshrining mandatory e-invoicing at EU level, ViDA confirms the Italian model rather than overturning it.

Cross-border transactions (other EU countries). This is where the change is. Today, supplies to EU counterparts are reported through the esterometro (which in Italy runs through SDI). From 1 July 2030, cross-border B2B transactions will require structured e-invoicing and near-real-time digital reporting to the EU standard. Cross-border reporting is therefore set to converge into the single system ViDA introduces.

The advantage, for anyone in Italy already using e-invoicing daily, is not starting from scratch: the tools, formats and habits are already there; they’ll be extended and adapted, not invented.

What to do today

Little, and without rushing:

  1. No new obligation applies today for ViDA: the first operational deadlines start in 2028.
  2. Keep using compliant, up-to-date invoicing software, so that when the EU standards apply it’s an update, not a revolution.
  3. If you work cross-border, keep an eye on this: that’s where ViDA will bite most, from 2030.

With FatturaSmart your invoices already travel on the official SDI channel in compliant XML format: you’re already inside the logic ViDA will bring across Europe.

In short

Frequently asked questions

What is ViDA?

ViDA (VAT in the Digital Age) is the European Union's VAT reform package, adopted on 11 March 2025. It progressively introduces, through to 2035, e-invoicing and digital reporting for cross-border transactions, new rules for digital platforms, and a single EU-wide VAT registration.

Does ViDA change anything for businesses already invoicing in Italy via SDI?

Not immediately for domestic transactions: Italy already has mandatory e-invoicing through its Sistema di Interscambio. The main change concerns cross-border B2B transactions between EU countries, for which structured e-invoicing and near-real-time digital reporting arrive on 1 July 2030. By 2035, national systems such as SDI must align with the EU standard.

What are the three pillars of ViDA?

1) Digital Reporting Requirements: e-invoicing and digital data reporting for cross-border transactions. 2) Platform economy: new 'deemed supplier' rules for short-term accommodation and passenger transport platforms. 3) Single VAT registration: an extended One-Stop Shop (OSS) to reduce VAT identification obligations across member states.

Do I need to do anything now for ViDA?

No, there is nothing urgent to do today. The first operational deadlines for businesses fall between 2028 and 2030. The most useful thing is to keep using compliant, up-to-date e-invoicing software: anyone already used to Italy's SDI starts ahead and won't have to change habits, only extend them to cross-border transactions.

Will Italy's esterometro disappear with ViDA?

The reporting of cross-border transactions (in Italy handled today via the esterometro through SDI) is set to converge into the EU digital reporting system introduced by ViDA from 2030. The details of the Italian implementation will be defined over the coming years.

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