Netherlands Outlines 4-Phase ViDA VAT Rollout Plan

July 13, 2025

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With the adoption of the VAT in the Digital Age (ViDA) package, the EU entered into a new phase of upgrading and transforming the EU-wide VAT system. However, the moment of adoption of the ViDA on the EU level marked the point from which EU countries had to start working on implementing these rules in their national legislatures. In the letter released on June 26, 2025, the Netherlands Ministry of Finance announced its four-phase plan of introducing the ViDA package rules and requirements.

The Four-Phase Implementation of ViDA

The four phases of the ViDA implementation process, as published by the Ministry of Finance, are policy research, legislation, technical elaboration, and implementation. The policy research phase focuses on e-invoicing obligations for domestic B2B transactions, mandatory digital reporting for domestic B2B transactions, and identifying the best technical infrastructure for e-invoicing and data reporting to the Tax Authority.

As noted in the letter dated July 1, 2030, companies must issue EU-compliant e-invoices for all intra-EU B2B transactions. Nevertheless, the government plans to conduct public consultations with businesses, especially considering the comments from the small businesses and service providers, before taking any action. Depending on the outcome of these consultations, the government will determine whether to mandate e-invoicing for domestic B2B transactions and extend real-time digital reporting obligations to these transactions as well.

Conclusion

According to the letter sent by the Dutch government to the House of Representatives, the implementation legislation is expected to be submitted at least two years before the planned implementation of ViDA rules and requirements, which will enable taxable persons to adjust their systems and prepare promptly.

Taking into account that the government is considering extending these rules to include mandatory e-invoicing and digital reporting for all domestic B2B transactions, it will be interesting to see how key stakeholders will react to this possibility.

Source: House of Representatives

What is the ViDA package mentioned in the article?

The VAT in the Digital Age (ViDA) package is an EU initiative aimed at modernizing the EU-wide VAT system through digital transformation, including e-invoicing and real-time reporting.

How is the Netherlands implementing the ViDA package?

The Netherlands is adopting a four-phase implementation plan: policy research, legislation, technical elaboration, and final implementation, as announced by the Ministry of Finance.

What does the policy research phase of ViDA focus on in the Netherlands?

The policy research phase addresses e-invoicing and digital reporting obligations for domestic B2B transactions, and explores the technical infrastructure needed for compliance.

Will e-invoicing become mandatory for domestic B2B transactions in the Netherlands?

The government is considering this but has not yet made a final decision. Public consultations with businesses will help determine whether to mandate domestic B2B e-invoicing.

When will Dutch legislation for ViDA be introduced?

The Dutch government plans to submit the implementation legislation at least two years before the ViDA rules are set to take effect, allowing businesses time to prepare.

How will the Netherlands handle feedback from small businesses regarding ViDA?

The government intends to conduct public consultations, especially with small businesses and service providers, to evaluate concerns before deciding on any mandatory obligations.

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