In part 4 of our newsletter series on the ‘VAT in the Digital Age’ reform, we deal with the so-called single VAT registration. The concept of a single VAT registration is based on a number of measures that are intended to eliminate the previous need for VAT registrations abroad. To achieve this, the One-Stop-Shop procedure and the rules on the reverse charge mechanism for B2B supplies by non-resident taxable persons in other EU Member States will be gradually extended as of 1 January 2027 and 1 July 2028. However, as is so often the case, the devil is in the detail. Member States are free to exercise options, and certain transactions will continue to require a registration abroad.

Following the ECOFIN Council's approval of the ViDA package, we would like to inform you in this newsletter about the e-invoicing obligations and digital transactional reporting obligations that companies will face. In a first step, the course will be set for national e-invoicing obligations. Later, e-invoicing and reporting obligations will be introduced at EU level. Key changes will then be a standardised definition for e-invoices and timely reporting obligations for both cross-border and national transactions.

This newsletter covers the new rules under the “VAT in the Digital Age” reform, which are intended to benefit the e-commerce industry. The new rules in this area are designed to reduce the number of registrations required in other EU countries for many businesses, including online retailers. A key requirement for this is the significant expansion of the One-Stop-Shop schemes. The new regulations will be introduced in two stages – on 1 January 2027, and 1 July 2028. It remains to be seen whether all parties will be able to benefit from them.