In 2025, the EU adopted a comprehensive digitalisation of the VAT system, also known as ViDA – VAT in the Digital Age.
The aim is both to enable more efficient digitalisation and to reduce the VAT gap, which in 2020 was estimated at €93 billion, of which €40–60 billion was attributed to VAT fraud. All EU Member States are required to implement the changes.
What does this mean for your business?
The changes introduced by ViDA mean, among other things, that all businesses, organisations and others engaged in B2B trade, both domestically and within the EU, must issue electronic invoices. These e-invoices must be delivered to the recipient no later than 10 days after the delivery is completed.
At the same time, the reforms will make it possible to reduce the number of local VAT registrations in other EU countries. In Denmark, the implementation will take place in connection with a standard chart of accounts, which will replace the VAT return as we know it today.
In practice, ViDA means that:
- Electronic invoicing (based on an EU standards) will become the default
- Data from cross-border B2B transactions must be reported at transaction level in a harmonised format (this will replace the EU Sales List)
- It will become easier to settle local VAT through a single EU solution instead of registering for VAT in multiple countries.
Invoicing, data and reporting will move from document-based and periodic filings to standardised, automated data flows. This will reduce errors and manual work. The changes will affect everyone – from small associations with limited VAT activity to large multinational corporations.
In Denmark, the first rollout of national e-invoicing may take place as early as 2026. Accounting data reporting via SAF-T is expected around 2028, and VAT reporting directly from the standard chart of accounts in SAF-T is expected to be introduced around 2029-2030. At EU level, the first directive changes will take effect on 1 January 2027.
Grant Thornton Denmark recommends that businesses already begin assessing how internal IT processes and accounting systems must be adapted to ensure they are prepared.
The changes also bring benefits
Although the reforms require adjustments, the benefits are tangible. Consolidated reporting through OSS (One Stop Shop) can reduce the need for local VAT registrations and administrative work.
As the EU Sales List is phased out in favour of transaction-level data reported directly from invoices, duplicate work – such as entering the same information in multiple returns – will be eliminated.
ViDA therefore represents both stronger control mechanisms and administrative simplification, provided that processes and systems are designed effectively and the implementation by the Danish tax authorities supports the transition.
Do you need advice?
If you would like to learn more about the changes that will affect everyone conducting VAT-liable activities in Denmark – including businesses, associations and others registered for VAT solely due to purchases abroad – please feel free to contact our VAT & Duties advisory team.
We are ready to assist with any questions, guidance and advice regarding the upcoming regulatory changes. We will also keep you updated as Danish implementation measures are introduced and provide proactive advice tailored to your business.
