On 24 September 2025, the European Commission moved its VAT in the Digital Age (ViDA) initiative into full implementation, confirming timelines and structures for one of the EU’s most significant tax modernisation drives in decades.
While the UK is no longer part of the EU VAT regime, thousands of UK businesses trade with EU consumers or use EU-based digital platforms. The impact will therefore be felt keenly by exporters, online retailers, and professional service firms selling into Europe.Key changes and implicationsDigital Reporting & E-Invoicing:
EU businesses will be required to transmit transactional data in near-real time. UK firms selling into the EU will need compatible systems to exchange structured data formats.Platform Rules:
Marketplaces and digital platforms will bear more VAT-reporting responsibility, particularly for small sellers. UK traders using EU-based platforms (Amazon, Etsy, booking sites) must verify who reports the VAT and whether their contracts reflect this.Single EU VAT Registration:
The expanded One Stop Shop (OSS) regime will allow cross-border sellers to register once for all EU consumer sales, but only if their systems and reporting meet compliance thresholds.What to do in November
While the UK is no longer part of the EU VAT regime, thousands of UK businesses trade with EU consumers or use EU-based digital platforms. The impact will therefore be felt keenly by exporters, online retailers, and professional service firms selling into Europe.Key changes and implicationsDigital Reporting & E-Invoicing:
EU businesses will be required to transmit transactional data in near-real time. UK firms selling into the EU will need compatible systems to exchange structured data formats.Platform Rules:
Marketplaces and digital platforms will bear more VAT-reporting responsibility, particularly for small sellers. UK traders using EU-based platforms (Amazon, Etsy, booking sites) must verify who reports the VAT and whether their contracts reflect this.Single EU VAT Registration:
The expanded One Stop Shop (OSS) regime will allow cross-border sellers to register once for all EU consumer sales, but only if their systems and reporting meet compliance thresholds.What to do in November- Map all EU sales and identify which involve third-party platforms.
- Review your invoicing data flows — ensure they support structured formats (XML/UBL).
- Speak with platform providers to clarify reporting responsibility.
- For large exporters, plan a phased “data connectivity” upgrade to meet real-time reporting expectations.