On 5 May 2025, the European Commission released the minutes from the 126th VAT Committee meeting on 21 March. This special session focused entirely on the first phase of implementing the VAT in the Digital Age (ViDA) package, which the EU Council officially adopted on 11 March 2025.
On the agenda
The meeting addressed two immediate areas impacted by the new rules: changes to e-Invoicing obligations and updates to the Import One-Stop Shop (IOSS) reporting framework. These changes are set to apply from the 20th day following the ViDA directive’s publication in the EU’s Official Journal.
E-Invoicing: clarifying the scope
The Commission presented a paper on amended Articles 218 and 232 of the VAT Directive, explaining how Member States can now mandate e-Invoicing for certain transactions and taxpayers. This early clarification aims to ensure consistent interpretation and application across the EU. Draft guidelines are being prepared to support this rollout.
More detail in IOSS reporting
The meeting also covered new rules requiring IOSS monthly reports to break down import data by Member State of consumption. This is intended to give tax authorities better insight for auditing. While generally welcomed, some Member States raised technical questions, especially regarding using EORI numbers to determine the final destination when consumer addresses are missing. The Commission clarified that the consumer’s address remains the primary reference, with EORI numbers as a backup.
Ongoing work
The Commission also briefly noted ongoing efforts to secure the IOSS number against misuse. A more detailed update on this will follow in the Group on the Future of VAT meeting on 28 March 2025.
Key takeaways
- Member States can now mandate e-Invoicing under updated Articles 218 and 232.
- Clarification was given on who can be targeted and how this affects future reporting rules.
- IOSS monthly reports must now show a breakdown per Member State of consumption.
- Concerns were raised over using EORI numbers when the consumer’s address is unavailable.
- A follow-up on securing IOSS numbers is planned for late March.
Learn more
For those affected by these changes, especially in cross-border e-commerce and digital services, the full meeting minutes provide essential insight:
Read the 126th VAT Committee minutes
