Netherlands – Bill: Single VAT Registration Reform under ViDA

The State Secretary for Finance submitted a Bill “Act on the Implementation of the VAT Directive in the Digital Age – Simplified VAT Registration” to the House of Representatives. This bill, when adopted, shall introduce the array of new rules under the concept of the EU’s ViDA pillar – Single VAT Registration. 

Single VAT Registration

One of the key elements of this VIDA pillar is to reduce the requirements that automatically trigger mandatory VAT registration across different Member States. EU regulators became aware that the rules governing when EU and non-EU businesses need to register for VAT in multiple countries aren’t aligned with the trade flows of the digital economy. 

The extension of the OSS scheme would allow that. This will lead to fewer VAT registrations and lower administrative and compliance costs for traders engaged in the EU transaction ecosystem. 

The second element of this pillar is the introduction of the new transfer scheme for the movement of own stock between Member States, without the need for local registration. Intra-EU acquisitions will be exempted in this context, thereby significantly reducing the number of multiple VAT registrations. The third element leads to updates to the reverse charge mechanism. The reverse charge mechanism will become mandatory for many transactions where it currently does not apply. 

The Law is expected to come into force in parts on January 1, 2027.