ViDA explained: What every SaaS needs to know about the EU's VAT in the Digital Age

The ViDA package was adopted by the European Union on 11 March 2025 and entered into force on 14 April 2025. After years of negotiation, it's finally happening, and the effects are already being felt. According to the European Commission's Implementation Strategy, the ViDA package is estimated to deliver between €172 billion and €214 billion in net benefits over a 10-year period, including €51 billion in savings for businesses.

If you're a software vendor serving European businesses, whether you offer accounting, ERP, financial management, or invoicing solutions, ViDA will directly impact how your product handles invoicing, VAT reporting, and cross-border transactions. The window for preparation is open now, but it won't stay open forever.

This article goes beyond the basics. If you want a general overview of ViDA, we recommend starting with our What is ViDA? explainer. Here, we'll focus on the practical implications for software companies: what's changing, when, and what you should be doing about it.

The three pillars of ViDA, and why Pillar 1 matters most to SaaS

ViDA is built around three pillars. While all three will shape the European business landscape, the first pillar is the one that will directly affect your product and your customers' day-to-day operations.

Pillar 1: Digital reporting requirements and mandatory e-invoicing

From 1 July 2030, e-invoicing becomes the default method for invoicing and is mandatory for cross-border B2B transactions. These e-invoices must comply with the European standard on e-invoicing (EN 16931).

Businesses will also be required to digitally report transaction data to tax authorities in near real time, replacing the current recapitulative statement system. Other invoicing formats may still be used for transactions not covered by a reporting obligation, if authorised by the relevant member state.

Pillar 2: Platform economy

Digital platforms facilitating short-term accommodation and passenger transport will become "deemed suppliers," responsible for collecting and remitting VAT. This applies from July 2028, though member states have the option to delay implementation to January 2030.

Pillar 3: Single VAT registration

The One-Stop Shop (OSS) will be expanded to cover more types of transactions, reducing the need for businesses to register for VAT in multiple member states. Key extensions begin in January 2027, with further changes from July 2028 onward.

For software vendors building invoicing or financial management tools, Pillar 1 is where the action is. It's what will require changes to your product, your infrastructure, and the way you support your customers.

The ViDA timeline: key dates for software vendors

One of the most important things to understand about ViDA is that it doesn't arrive all at once. The rollout is phased, and it's happening in parallel with national mandates that are moving even faster.

Here's what the timeline looks like:

• Already in effect (April 2025): EU member states no longer need prior approval from the European Commission to mandate domestic e-invoicing. This removed the last barrier for countries that were waiting for permission to act, and many are acting quickly.
• January 2027: Updates to e-commerce VAT rules, including new OSS rules for cross-border supplies of electricity, gas, heating and cooling. Extension of Single VAT Registration, including mandatory reverse charge mechanisms.
• July 2028: Optional "deemed supplier" regime for platforms.

• January 2035: Domestic e-invoicing systems that were in place before January 2024 (such as Italy's SDI) must align with the EU-wide framework.

Which EU countries already require e-invoicing?

Here's the critical point many software vendors underestimate: the EU-wide deadline of July 2030 is not where it starts. National mandates are arriving years earlier, and your customers will need your software to comply.

Here's just a few examples:

Belgium made B2B e-invoicing mandatory from 1 January 2026, using the Peppol network and EN 16931 standard. A near real-time e-reporting obligation is expected to follow in 2028. Germany introduced mandatory e-invoice reception from 1 January 2025, with phased sending obligations from 2027 onwards for larger businesses and full enforcement by 2028.

France has been rolling out its e-invoicing and e-reporting mandate, with obligations arriving in phases in 2026 and 2027. Poland, Spain, and Romania are all progressing domestic mandates at varying stages of implementation.

Each of these countries has its own specific requirements, formats, and timelines, but they all share a common direction: structured e-invoicing is becoming the norm, and paper or PDF invoices are being phased out for B2B transactions.

For software vendors, this is both a challenge and an opportunity. Your customers operating across multiple European markets will need a solution that handles the national requirements today while being ready for the harmonised EU framework of 2030.

How does ViDA affect software and SaaS products?

Let's get specific about what ViDA implies for your product roadmap.

Structured e-invoice support is no longer optional

Your software needs to generate, send, receive, and process structured e-invoices in formats conforming to EN 16931: primarily UBL 2.1 and CII. PDFs and unstructured formats will not be compliant for mandated transactions. If your invoicing module still treats e-invoicing as an add-on or an afterthought, it's time to rethink.

Peppol is the name of the game

Peppol is becoming the default infrastructure for e-invoice exchange in many European countries, and it's likely to play a central role in the ViDA framework. Your software needs a reliable path to the Peppol network, either by becoming an Access Point yourself (which can be a significant investment) or by partnering with a certified Access Point provider.

Real-time reporting will change data flows

Under the Digital Reporting Requirements, invoice data will need to be transmitted to tax authorities on a transaction-by-transaction basis in near real time. This means your system architecture needs to support automated, event-driven data transmission, not batch processing at the end of a period.

Multi-country compliance brings more complexity

Since each member state can implement its own domestic e-invoicing system (and many already have), your product needs to handle multiple country-specific requirements simultaneously. Format variations, validation rules, local Peppol CIUS (Core Invoice Usage Specifications), and transmission protocols all differ.

Invoice validation becomes critical

With structured data being reported directly to tax authorities, the tolerance for errors drops significantly. Built-in validation, checking that invoices are syntactically correct, contain all required fields, and comply with the relevant country specifications, is essential before any invoice leaves your system.

Should software vendors build or buy ViDA compliance?

This is the strategic question every software vendor faces: should you build e-invoicing and ViDA compliance capabilities in-house, or partner with a specialised provider?

Building in-house gives you full control, but the ongoing cost and complexity is substantial. E-invoicing compliance isn't a feature you build once and ship: it's living infrastructure. Formats evolve, country mandates change, Peppol specifications get updated, and new reporting requirements emerge. Maintaining this across multiple European markets requires dedicated resources and deep regulatory expertise.

Partnering with an e-invoicing provider like Maventa means you can offer your customers a compliant, multi-country e-invoicing solution through a single API integration. Your development team stays focused on your core product, while the compliance layer is handled by specialists who do this every day.

For most software vendors, the partner route is the pragmatic choice. It's faster to market, lower risk, and more scalable. The key is choosing a partner whose API is developer-friendly, whose network coverage matches your customer base, and whose track record demonstrates they can keep pace with the regulatory landscape.

How to turn ViDA into a competitive advantage

ViDA is a market opportunity for SaaS vendors who move early.

Many European businesses are still unaware of the specifics of ViDA and the national mandates heading their way. If your software proactively helps them comply, you become a trusted partner rather than just a tool. This strengthens retention and opens upselling opportunities.

E-invoicing mandates are creating demand for compliant software in countries where your product may not yet even have a footprint. If your solution already handles Belgian, German, or French e-invoicing requirements, you have a compelling reason to enter those markets.

In a crowded market, "ViDA-ready" is a genuine differentiator. Customers evaluating software vendors will increasingly ask whether a product supports structured e-invoicing, Peppol connectivity, and real-time reporting. Being able to say yes, confidently, gives you an edge.

E-invoicing can be monetised as a value-added service within your software. Transaction-based pricing, premium compliance features, or bundled Peppol connectivity are all models that software vendors are successfully using today.

ViDA readiness checklist for software vendors

Here's what we recommend doing in the near term:

1. Audit your current invoicing capabilities. Can your product generate and process compliant, structured e-invoices? Is it connected to the Peppol network? Does it support the formats required in your target markets?

2. Map your customers' compliance needs. Where are your customers located? Which national mandates apply to them and their customers, and when? This mapping exercise will clarify your product priorities.

3. Evaluate the build vs. partner decision. Be honest about the resources and expertise required to build and maintain e-invoicing infrastructure. For most vendors, partnering is the fastest and most sustainable path.

4. Start now, even if the EU deadline is 2030. National mandates like Belgium (2026) and Germany (2027) are already driving urgency. Your customers need solutions today, not in four years.

5. Stay informed. The regulatory landscape is evolving constantly. Explanatory notes from the European Commission, national implementation details, and technical specifications are still being finalised. Having a partner who tracks these developments and adapts proactively is a valuable asset.

How Maventa helps software vendors with ViDA compliance

At Maventa, we've been building e-invoicing infrastructure for nearly 20 years. We serve over 300 software vendors across Europe, connecting more than 400,000 companies through our network. Our API is designed specifically for software companies: it's developer-friendly, well-documented, and built to handle the complexity of multi-country e-invoicing.

As ViDA reshapes the European invoicing landscape, we're here to make sure your software and your customers are ready. Whether you're starting your e-invoicing journey or expanding into new markets, an integration with Maventa gives you Peppol connectivity, multi-format support, and ViDA compliance without the overhead of building it yourself.

Frequently asked questions about ViDA

What is ViDA?

ViDA (VAT in the Digital Age) is an EU legislative package that modernises the EU's VAT system. It introduces mandatory e-invoicing and real-time digital reporting for cross-border B2B transactions, new VAT rules for digital platforms, and a simplified single VAT registration system. The package will be phased in over time, with the final alignment deadline running to 2035.

When does ViDA e-invoicing become mandatory?

Mandatory e-invoicing for intra-EU B2B transactions takes effect on 1 July 2030 under the Digital Reporting Requirements pillar. However, many EU member states are introducing national e-invoicing mandates well before that date.

Does ViDA affect software vendors?

Yes. Software vendors offering accounting, ERP, financial management, or invoicing solutions will need to ensure their products can generate, send, receive, and process structured e-invoices compliant with the European standard EN 16931. Products will also need to support connectivity to the Peppol network and handle real-time data transmission to tax authorities.

What e-invoice format does ViDA require?

ViDA requires e-invoices to comply with the European standard on e-invoicing (EN 16931), with the primary syntaxes being UBL 2.1 and CII. PDF invoices and other unstructured formats will no longer be compliant for mandated transactions.

Should software vendors build or partner for ViDA compliance?

Most software vendors choose to partner with a specialised e-invoicing provider rather than building compliance infrastructure in-house. E-invoicing compliance requires ongoing maintenance across multiple countries, formats, and regulatory changes. Partnering through an API integration, such as with Maventa, allows vendors to offer compliant e-invoicing while keeping development resources focused on their core product.

What is the role of Peppol in ViDA?

Peppol is becoming the default infrastructure for e-invoice exchange across many EU countries. While ViDA does not mandate Peppol specifically, the network's alignment with EN 16931 and its widespread adoption make it a central part of the ViDA compliance landscape for software vendors.

Ready to make your software ViDA-ready? Let's talk.