SERES Blog English

On 11 March 2025, during the meeting of the Economic and Financial Affairs Council (ECOFIN), the European Union gave the green light to the VAT in the Digital Age package, also known as the ViDA project (VAT in the digital age). This reform can be regarded as one of the most significant developments in recent years in the areas of VAT, tax digitalisation and the harmonisation of electronic invoicing in Europe.

Continuing issues with VAT fraud are prompting tax authorities to adopt machine learning and generative artificial intelligence to tackle the problem. Tax authorities in numerous countries, including those in the European Union, are increasingly adopting artificial intelligence tools to combat VAT fraud.

The Electronic Invoicing Service Providers Association (EESPA) has welcomed the harmonisation of e-invoicing and digital reporting requirements (DRR) proposed as part of the ViDA (VAT in the Digital Age) project. The EESPA seeks to encourage the use of the DCTCE model for B2B transaction data and exchanging invoices.

The recent Economic and Financial Affairs Council, commonly known as ECOFIN, convened in Luxembourg in July. During this meeting, EU member states demonstrated broad agreement on the majority of proposals presented under the ViDA project.