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ViDA package and electronic invoicing: what changes and how to act
VAT management in Europe is changing. The entry into force of the ViDA package will completely redefine tax obligations and will lead businesses operating within the EU to adopt new shared standards. Although European legislation will fully come into force over the coming years, it is worth learning about the upcoming changes. And understanding now how to make the most of them and how A-Cube solutions can simplify this evolution.
What is the ViDA package
ViDA is the acronym for “VAT in the Digital Age”, that is 'value added tax in the digital age'. The ViDA package was introduced by the European Commission with the aim of modernising, simplifying and adapting VAT management in Member States to the digital economy. It came into force in March 2025 and will run until January 2035, although the initial proposal envisaged shorter timeframes (2027).
The reform of ViDA is centred on three pillars. The first concerns Digital Reporting (DRR) requirements, that is, the implementation of electronic invoicing and the creation of digital reporting systems that facilitate tax exchanges between Member States. The second strengthens the role of digital platforms for short-term rentals and hire in VAT collection. The third, finally, proposes the creation of a single VAT registration system (OSS).
As it is adopted, the ViDA package may help to:
combat tax evasion;
increase the traceability and transparency of international financial transactions;
reduce and simplify bureaucratic and administrative burdens, especially those affecting small and medium-sized enterprises;
save time and costs thanks to standardised and automated procedures;
reduce errors usually linked to transaction reporting and manual data transmission;
improve organisations' efficiency through the digitalisation of tax flows.
The reform affects the entire European internal market and all its players, from cross-border B2C and B2B businesses to digital platforms.
Which obligations does the ViDA package entail
With the introduction of the ViDA package, companies operating at European level will have to report transactions to the tax authorities in a standardised and real-time manner. To do so, they may adopt electronic invoicing systems. The obligation also applies to cross-border B2B transactions, that is, those taking place between companies in different Member States of the Union, and those of online platforms (e-commerce and hire/rental).
One of the most important changes concerns the 'deemed supplier' regime (applicable from 01 January 2030) provided for digital platforms. These will be responsible for the collection and transmission of VAT on behalf of suppliers who do not do so directly. A supplier who does not communicate their VAT identification number may declare to the platform operator the intention to charge the tax.
Another update of the ViDA reform is the removal of the clause that, until now, required the customer's explicit acceptance to receive an invoice in electronic rather than paper format. From this year onwards, no prior approval will be necessary.
What does the introduction of the ViDA reform mean in Italy?
In this context, Italy is in an advantageous position. It was in fact among the first countries to opt for electronic invoicing and to extend it to almost all VAT-registered parties as early as 2019. In 2023, it obtained an extension from the EU to continue using the Sistema di Interscambio (SdI) until 31 December 2027 or until the definitive introduction of an alternative European system. In Italy, moreover, the transmission of VAT data to the tax authorities is already an established practice.
Italian companies do not need to radically change their invoicing workflows. In the long term, however, they will have to align with European standards. These will provide for the introduction of a single format for e-invoicing and the adoption of a system for communicating data concerning intra-EU transactions.
Peppol and international e-invoicing
As noted, in Italy electronic invoicing is already a strategic management optimisation tool widely chosen by companies. With the introduction of the ViDA package, the ability to manage document exchanges with business partners in other European countries becomes crucial. It is already possible to benefit from interoperable tools such as Peppol, designed precisely to standardise and simplify e-invoicing.
Peppol (Pan-European Public Procurement On-Line) is a system that allows companies and public administrations from different countries to exchange documents, data and electronic invoices. It does so through a certified and secure network, used today by almost 1.5 million companies in 98 registered countries. This standard system makes it easy to exchange documents between countries that use different e-invoicing systems. This speeds up business flows, greatly reduces the risk of fraud and ensures automatic compliance with the regulations of other countries.
In Italy, the management of the Peppol network is entrusted to AgID, the Agency for Digital Italy, which is responsible for accrediting authorised providers to give companies access to the network. A-Cube is one of these providers: it is an official access point that enables businesses to join the Peppol network and obtain their Participant ID, that is the electronic address that identifies them uniquely.
A-Cube Peppol platform
Thanks to the solutions implemented by A-Cube, it is possible to manage communications during the document exchange process securely and in compliance with regulations. In particular, the A-Cube Peppol platform handles all activities by communicating with the systems already used by the company, ensuring simple integration. In addition, it is able to automatically manage processes and checks relating to compliance and documents in real time.
The A-Cube Peppol API dashboard allows invoices, credit notes, orders, order responses and shipping notices to be managed. It also makes it possible to:
monitor usage
manage incoming and outgoing document flows
use filters for file analysis
decide specifically how to interact with each company system
choose customised configuration options.
In the future, regardless of the ViDA package, Peppol could be used to standardise logistics and to manage the exchange of information between the public sector, citizens and businesses. It is therefore worth considering adopting it so that it becomes, from now on, a real competitive advantage. Anyone who needs to integrate the A-Cube solutions for Peppol or obtain further information can do so by writing to us at info@acubeapi.com.
