ViDA: EU VAT Digital Age Package 2025–2035

The ViDA package was published in the Official Journal of the EU on 25 March 2025 and entered into force on 14 April 2025. For entrepreneurs operating in Poland, the bottom line is this: the national KSeF system (Krajowy System e-Faktur — Poland's mandatory e-invoicing platform) must be harmonised with the EU-wide EN 16931 standard by 1 January 2035 at the latest. Before that deadline, Poland retains full autonomy over domestic e-invoicing — but companies conducting B2B trade with EU partners should start preparing now for mandatory cross-border e-invoicing from July 2030.

What exactly is the ViDA package and why does it exist?

ViDA — VAT in the Digital Age — is a legislative initiative by the European Commission aimed at modernising the VAT system in response to the digitisation of the economy. The VAT gap across the EU amounts to tens of billions of euros annually, and traditional control mechanisms (quarterly declarations, post-hoc audits) simply cannot keep pace with the volume of electronic transactions.

The package rests on three pillars:

• Digital Reporting Requirements (DRR) + mandatory e-invoicing — cross-border from 2030, domestic by 2035.
• Platform Economy — new VAT collection duties for platforms like Uber, Airbnb, and Booking under "deemed supplier" rules.
• Single VAT Registration (SVR) — expansion of the OSS (One Stop Shop) mechanism, eliminating the need for multiple VAT registrations across member states.

Each pillar takes effect on a different timeline, meaning businesses must plan their compliance in stages.

Digital Reporting Requirements — cross-border e-invoices from 2030

The first and most impactful pillar concerns mandatory e-invoicing for B2B transactions between entities in different EU member states. From July 2030, every invoice issued for an intra-Community supply of goods — known in Poland as WDT (Wewnątrzwspólnotowa Dostawa Towarów) — or intra-Community acquisition of goods — WNT (Wewnątrzwspólnotowe Nabycie Towarów) — must be in electronic format compliant with the EN 16931 European e-invoicing standard.

Key parameters of the DRR system:

• Digital reporting must occur within 10 days of invoice issuance.
• The invoice format must comply with EN 16931 (structured XML/UBL).
• This applies exclusively to cross-border B2B transactions — domestic invoicing remains under national jurisdiction until 2035.

For Poland-based businesses handling WDT/WNT settlements, this means implementing a new reporting channel alongside KSeF. In practice, ERP systems will need to support two formats: FA(3) for KSeF and EN 16931 for DRR.

ViDA implementation timeline — key dates

Date	Event	Impact on Poland-based businesses
25.03.2025	Publication in the Official Journal of the EU	Official start of the legislative process
14.04.2025	ViDA package enters into force	Transitional period begins
01.01.2027	SVR/OSS expansion	Fewer foreign VAT registrations needed; simplified OSS procedure
01.07.2030	Mandatory cross-border B2B e-invoicing	New EN 16931 standard for WDT/WNT
01.07.2030	Platform Economy — deemed supplier rules	Platforms collect VAT on behalf of unregistered suppliers
01.01.2035	Harmonisation of national systems with EN 16931	KSeF (FA3) → mapping to EN 16931

Platform Economy — how ViDA changes VAT for Uber, Airbnb, and Booking

The second pillar addresses the platform economy and introduces the deemed supplier principle. From 2030, platforms facilitating short-term accommodation rentals (stays up to 45 days) and passenger transport will be required to collect and remit VAT on behalf of suppliers who are not registered for VAT.

In practice, this means:

• A flat owner renting through Airbnb for periods under 45 days will no longer need to account for VAT themselves — the platform handles it.
• An Uber driver not registered as a VAT taxpayer does not issue invoices — the platform is treated as the service provider.
• Booking.com, Vrbo, and other booking platforms become the VAT payers on their users' transactions.

For Poland-based JDG (Jednoosobowa Działalność Gospodarcza — sole proprietorship) owners renting apartments to EU tourists, this change may simplify compliance — but it also means losing control over invoicing and potential complications when deducting input VAT.

Single VAT Registration — the end of multiple EU registrations?

The third pillar — Single VAT Registration (SVR) — expands the One Stop Shop (OSS) mechanism to cover new transaction categories. From 1 January 2027, SVR will encompass:

• Transfer of own stock between EU member states (call-off stock, consignment warehouses).
• Domestic B2B transactions carried out by entities that are not tax residents of the given member state.
• Extension of the existing OSS to new categories of supplies.

For a Poland-based company selling goods from a warehouse in Germany to German customers, this means it will no longer need to register for VAT in Germany — settlement through the expanded OSS in Poland will suffice. This is a significant administrative simplification, especially for SMEs engaged in cross-border sales.

How ViDA affects Poland's KSeF — what will change?

Poland implemented its KSeF (National e-Invoice System) based on its own FA(3) logical structure. The ViDA package does not require an immediate overhaul of this system — KSeF operates autonomously until 1 January 2035. After that date, however, Poland must ensure its domestic structure is compatible with EN 16931.

What this means in practice:

• The MF (Ministerstwo Finansów — Ministry of Finance) will need to develop an FA(3) → EN 16931 mapping.
• Poland may receive a derogation (exemption) allowing it to retain KSeF with gradual convergence.
• Companies engaged in cross-border B2B trade will need to generate invoices in two formats from 2030: FA(3) for KSeF and EN 16931 for the EU-wide DRR.
• ERP systems and accounting software will require updates supporting both standards.

It is worth noting that Poland is not alone — Italy (SDI), Spain, France, and Romania also have domestic e-invoicing systems and will need to carry out analogous harmonisation by 2035.

Implementation costs of ViDA for Poland-based businesses

Preparing for ViDA entails concrete expenditures. Estimated costs for Polish businesses by size:

Business type	Scope of work	Estimated cost (PLN)
JDG / micro-enterprise (intra-EU trade)	Invoicing software update, training	2,000–8,000 PLN
SME (10–50 employees, WDT/WNT)	ERP upgrade, EN 16931 integration, testing	15,000–60,000 PLN
Large enterprise (warehouses in multiple EU countries)	Full DRR + SVR integration, FA(3)↔EN 16931 mapping	80,000–300,000 PLN

On top of technical costs, factor in tax advisory fees (EU VAT consultations typically run 500–1,500 PLN/hour) and training for your accounting team.

ViDA and B2C sales — does it affect small online shops?

The DRR component of ViDA focuses on B2B transactions. Cross-border B2C (business-to-consumer) e-commerce sales continue to be settled through the OSS procedure, which will be expanded under the SVR pillar from 2027.

However, ViDA will indirectly affect B2C sellers too:

• Marketplace platforms (Amazon, Allegro for cross-border sales) may fall under deemed supplier rules.
• The OSS expansion will simplify settlements for sellers using fulfilment warehouses in other EU countries.
• Standardised invoice formats will make it easier to automate accounting processes.

How to prepare your business for ViDA — action plan 2026–2030

Entrepreneurs engaged in B2B trade with EU partners should begin preparations now. Here is the recommended timeline:

• 2026: Audit your cross-border invoicing processes. Identify WDT/WNT transactions that will fall under future DRR requirements. Implement KSeF in line with current deadlines.
• 2027: Analyse the benefits of the expanded OSS/SVR. Assess whether maintaining VAT registrations in other EU countries is still necessary.
• 2028–2029: Select and implement a technical solution supporting EN 16931. Run integration tests with your trading partners' systems.
• July 2030: Full readiness for cross-border B2B e-invoicing in EN 16931 format with 10-day reporting.

Common mistakes to avoid

• Mistake 1: Assuming KSeF equals full ViDA compliance. KSeF is built on the FA(3) structure, which is not the same as EN 16931. By 2030, companies engaged in cross-border B2B trade will need both formats.
• Mistake 2: Ignoring the 10-day reporting deadline. Under DRR, the report must reach the system within 10 days of invoice issuance — a much tighter deadline than the current VAT-EU declarations (due by the 25th of the following month).
• Mistake 3: Confusing SVR with the elimination of all foreign VAT registrations. SVR expands OSS but does not eliminate every scenario requiring local registration — for instance, importing goods from outside the EU into a warehouse in another member state may still require a local tax number.
• Mistake 4: Leaving preparations to the last minute. July 2030 is less than 4 years away — implementing a new invoicing standard in your ERP typically requires 12–18 months of work.
• Mistake 5: Failing to account for deemed supplier rules in your calculations. Businesses using platforms like Booking or Uber to deliver services should already be analysing how the new rules will affect their margins and VAT cash flow.

FAQ

Will ViDA replace Poland's KSeF?

No. KSeF will operate autonomously until 1 January 2035. After that date, Poland must ensure that the FA(3) structure is compatible with EN 16931, but it may obtain a derogation allowing gradual convergence. KSeF will not disappear — it will be harmonised with the EU-wide standard.

When do I need to start issuing cross-border e-invoices in EN 16931 format?

The obligation applies to cross-border B2B transactions (WDT/WNT) from July 2030. Reporting must occur within 10 days of invoice issuance. Domestic B2B transactions remain under KSeF jurisdiction until 2035.

Does ViDA apply to sole proprietorships (JDG)?

Yes — if your JDG conducts B2B trade with partners in other EU member states (e.g., exporting IT services to Germany or purchasing goods from the Netherlands). If your JDG operates exclusively on the domestic Polish market, the direct impact of ViDA will only be felt after 2035 when KSeF is harmonised with EN 16931.

What does "deemed supplier" mean for my Airbnb rental?

From 2030, Airbnb (and other short-term rental platforms for stays up to 45 days) will collect and remit VAT on your behalf if you are not registered as a VAT taxpayer. If you are a registered VAT taxpayer, the deemed supplier rule does not apply — you continue to account for VAT yourself.

Will the 2027 OSS expansion let me close my German VAT registration?

Potentially. From 1 January 2027, the expanded OSS (under SVR) will cover transfers of own stock and domestic B2B transactions by non-residents. If your German registration exists solely due to these transaction categories, you will be able to close it and settle through OSS in Poland. However, consult a tax adviser — certain situations (e.g., a permanent warehouse receiving imports from outside the EU) may still require local registration.

Summary

The ViDA package represents a fundamental restructuring of the EU's VAT architecture. For Poland-based businesses, three dates matter most: 2027 (OSS/SVR expansion — potential to simplify foreign registrations), July 2030 (mandatory cross-border B2B e-invoicing in EN 16931 with 10-day reporting), and 2035 (harmonisation of KSeF with the European standard).

Companies engaged in intra-Community trade should start planning for EN 16931 support alongside KSeF right now. The cost of preparation grows with delay — the sooner you audit your EU VAT settlement processes, the lower the risk of a chaotic, last-minute implementation. ViDA is not a one-day revolution — it is a four-year process that demands a strategic approach starting today.