Single VAT Registration: reducing the need for foreign VAT registrations
A bill currently under consideration by the Dutch Parliament implements the SVR component of ViDA. The objective of these measures is to further reduce the number of VAT registrations businesses require across the European Union by expanding the scope of the existing One Stop Shop (OSS) schemes. Businesses will be able to declare and pay VAT due in multiple Member States through a single Member State of identification, simplifying VAT compliance obligations and reducing administrative complexity.
One of the key changes is the expansion of the Union OSS scheme to cover additional B2C transactions. In addition, the current call-off stock simplification will be abolished and replaced by a new regime for transfers of own goods between EU Member States. Under certain circumstances, this new transfer scheme will allow businesses to move goods between EU Member States without having to obtain or maintain a VAT registration in those countries. Instead, such movements may be reported through the OSS system.
The expansion of the OSS scheme will be introduced in stages. Supplies of gas, electricity, heating and cooling to non-taxable persons will fall within the OSS regime from 1 January 2027. From 1 July 2028, the scope will be broadened further to include a wider range of B2C supplies of goods and services made by businesses that are not established in the Member State of consumption. As a result, many businesses may be able to eliminate some of their existing foreign VAT registrations and simplify their VAT compliance processes.
While the expanded OSS regime will cover a significant proportion of cross-border B2C transactions, some supplies will remain outside its scope. Examples include transactions subject to the margin scheme or the travel agents’ scheme, as well as certain import transactions.
Extension of the mandatory reverse charge mechanism
Another important change introduced under the ViDA package is the extension of the mandatory reverse charge mechanism. Under the new rules, VAT will, in certain situations, no longer be payable by the supplier that is not established in the country where VAT is due, such as the Netherlands. Instead, the VAT liability will shift to the customer that is identified for VAT purposes in that country. The objective of this measure is to further reduce the need for foreign VAT registrations and decrease the administrative burden for internationally operating businesses.
The Netherlands has incorporated this change into its legislative proposal implementing the ViDA Directive, with the new rules expected to take effect on 1 July 2028.
The proposed extension prompted discussion during the consultation phase because the new reverse charge mechanism would operate alongside existing Dutch reverse charge provisions. This raised concerns that, in certain circumstances, it could be unclear which provision would take precedence. In response, the Dutch legislator clarified in a recent amendment how the various reverse charge mechanisms interact and how they should be applied in practice.
For many businesses, the measure is expected to reduce the number of situations in which they are required to obtain and maintain a VAT registration.
Dutch implementation timeline for e-invoicing and digital reporting
For many businesses, the most significant aspect of ViDA will ultimately be the introduction of mandatory e-invoicing and digital reporting for intra-EU B2B transactions. The Dutch government has confirmed that these measures will be implemented through separate legislation. According to recent statements from the State Secretary for Finance, a draft bill is expected to be submitted to Parliament during the summer of 2027, while a public consultation is expected to begin in the autumn of 2026.
This timeline provides businesses with additional time to prepare while also demonstrating that preparations for ViDA implementation are already well underway. The mandatory EU-wide deadline for introducing digital reporting and e-invoicing for intra-EU transactions is 1 July 2030.
E-invoicing may extend beyond cross-border transactions
A previous report published by the Dutch government indicates that the Netherlands is exploring a broader implementation than required under ViDA. The report, commissioned by the Ministry of Finance, recommended examining the introduction of e-invoicing not only for intra-EU transactions but also for domestic transactions. It also suggested the use of Peppol as a single national infrastructure and alignment with the European e-invoicing standard EN 16931 and the ViDA data requirements. This approach would contribute to a more harmonised, efficient and future-proof digital VAT environment.
What should businesses be doing now?
Although the first Dutch ViDA legislation focuses primarily on the expansion of the OSS scheme and the extension of the reverse charge mechanism, businesses should already be assessing the broader impact of the reforms. Mandatory e-invoicing and digital reporting will require organisations to review ERP systems, invoicing processes, tax determination logic, data governance frameworks and internal controls.
At the same time, companies holding multiple EU VAT registrations should evaluate whether the expanded OSS framework and extended reverse charge mechanism could simplify their VAT compliance obligations and reduce administrative burdens once the new rules become effective.
Conclusion
The Netherlands has taken another important step towards implementing the ViDA package. The publication of additional legislative details confirms the direction of travel: greater use of the OSS framework, fewer VAT registrations across the EU, and a gradual transition towards mandatory e-invoicing and real-time digital reporting.
Although the implementation of the first ViDA measures will be phased in between 2027 and 2030, businesses should not wait until the final stages of implementation to begin preparing. Early preparation can help organisations reduce implementation costs, improve VAT compliance, optimise invoicing and reporting processes, and benefit from the simplifications that ViDA is designed to deliver.
For many businesses, ViDA should not be viewed solely as a tax compliance project. The reforms will affect finance, IT, procurement and supply chain processes. A timely ViDA impact assessment can help identify gaps in systems, data quality and invoicing processes before the new obligations become mandatory, enabling organisations to prepare effectively and minimise disruption.
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