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On 25 March 2025, the EU Council Directive amending Directive 2006/112/EC as regards VAT rules for the digital age was published in the Official Journal of the European Union, along with changes to the EU VAT Implementing Regulations (see also here). This publication completes the legislative process, and the ViDA package will enter into force 20 days after the day of publication.
The original ViDA package was published on 8 December 2022 and consists of three pillars:
Since the European Commission released its original proposal on 8 December 2022, it has been subject to ongoing negotiations between the EU Member States. While Member States managed to reach consensus on Pillars 1 and 3 in early 2024, EU Member States continued to hold diverging views on Pillar 2 of the proposal.
Member States finally reached agreement on the general approach during the Economic and Financial Affairs Council (ECOFIN) meeting on 5 November 2024 and this amended ViDA Directive was officially adopted on 11 March 2025.
The publication of the Directive in the Official Journal of the European Union on 25 March 2025 completes the legislative process; with the law to come into effect in staggered dates as set out in the ViDA Directive.
Please find out what the ViDA Directive will mean for you here.
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