VAT in the Digital Age: What Companies Need to Know About Future Measures

These changes can be briefly presented via the following schematic overview.

What do the changes entail?

• From January 1, 2026, e-invoicing will be mandatory for domestic transactions in Belgium. Companies should adapt their systems as soon as possible.
• For the One-Stop-Shop system, the main change on January 1, 2027, is the extension to the supply of electricity, gas, and heating.
• On July 1, 2028, online platforms (such as Airbnb, Uber, etc.) will be required to pay VAT on short-term accommodation rentals and passenger transport. Platform operators will need to adjust their systems to enable the collection and remittance of VAT on certain transactions.
• Expensive VAT registrations in each member state where companies are active will be avoided by single VAT registration. This includes the introduction of a mandatory reverse charge mechanism on local transactions and the extension of the One-Stop-Shop system for more types of transactions (e.g., local sales of goods in other Member States after transfer). Administrative obligations will be significantly simplified for companies with cross-border activities.
• For intra-community transactions between taxable persons, the obligation of electronic invoicing and digital VAT reporting will come into effect on July 1, 2030. Member States that have already implemented the systems by January 1, 2024, have until January 1, 2035, to comply with the European standard to be interoperable with the European system. This measure aims to combat VAT fraud in a cross-border context.

Our PKF BOFIDI experts are happy to assist you further.

The ViDA package is a structural modernization of the European VAT system. Companies must proactively invest in digitization and seek timely advice to prevent problems and benefit from more efficiency and less administrative burdens. Our experts are happy to assist you further.

This article was written by Yentel Switsers.