VAT digitisation has arrived in Europe. Across the continent its popularity with tax authorities is driven by the greater visibility it provides into businesses. Digitisation also provides the opportunity to close long-standing VAT gaps and generate greater revenue.

According to the European Commission, member states lost €93bn (£81bn) in VAT revenues in 2020. With a new wave of reform, businesses operating in Europe are rushing to accommodate digitisation to avoid facing penalties from non-compliance.

What is ViDA changing?

In December last year, the European Commission announced the VAT in the Digital Age (ViDA) proposals, created to regulate and tighten tax digitisation across the EU.