When does the main part of ViDA start?

Yes, but gradually. The key measures for a single VAT registration under the ViDA or „VAT in the Digital Age” package will come into effect July 1, 2028. From this date, the OSS or single window system will be expanded and mandatory reverse charge for non-resident sellers will come into effect. Before that, January 1, 2027, only a small change will come into effect, mainly concerning OSS supplies of gas, electricity and heat. The call-off stock procedure will disappear permanently June 30, 2029, as new movements of goods under this procedure may not commence after 30 June 2028.

What does „single VAT registration” actually mean?

The name is misleading. ViDA will not create a new pan-European VAT number. According to the European Commission's explanation only the scope of use of OSS is expanding, which is why in rare cases you will have to register separately for each destination country. Your Estonian VAT number will not disappear, only what can be declared under it will change.

What three changes will reduce the need for foreign VAT returns?

  • OSS expansion: from 1 July 2028, you can also declare via the Union OSS certain local B2C goods deliveries in countries where the company is not established.
  • Handing over your goods: the shipment of goods to another member state can be under the new special procedure declare only with the VAT number of the country of registration, provided that the country of destination has full input VAT deduction rights.
  • Mandatory reverse charge: if the seller is not registered in the destination country, but the buyer is liable for VAT there, the tax liability will according to the new Article 194 to the buyer.

What do these changes look like in the daily work of an Estonian company?

  1. An Estonian e-shop sells goods to Lithuanian consumers directly from an Estonian warehouse. Such sales are already taking place today through OSS, as it exceeds Distance selling threshold of 10,000 euros.
  2. An Estonian wholesaler moves goods from a warehouse in Tallinn to a warehouse in Poland for resale. From 1 July 2028, this movement can be declared special arrangements for the delivery of your goods via, without a Polish VAT number.
  3. An Estonian service company installs equipment in Germany for a German VAT payer. From the same date, VAT will be passed on to the buyer via reverse charge, without the seller having to register in Germany.

What thresholds and obligations will not disappear?

ViDA does not touch on two familiar boundaries. 10,000 euro EU-wide distance selling threshold and Estonia Registration threshold of 40,000 euros remain unchanged, they are separate rules, not part of ViDA. The user of the special procedure for the delivery of his goods must submit monthly declaration also in month zero and retain the data for 10 years from the end of the year of transfer. Reverse charge does not cover sales to the end consumer, because in the case of B2C, OSS or local registration is still required.

What is worth doing before 2028?

Map where you have foreign VAT numbers and warehouses and differentiate between B2C and B2B sales flows. This will show you which of the three measures applies to you. Keep an eye on the changes to the Estonian VAT Act that must be according to the implementing regulations be adopted and published no later than June 30, 2028. Do not change current registrations until the Tax and Customs Board publishes specific instructions, because As of August 6, 2026 it had not been done yet.

FAQ

When does the main part of ViDA come into effect and what will change?

The main measures of ViDA will enter into force on 1 July 2028. From this date, the OSS will be extended and mandatory reverse charge for non-resident sellers on B2B sales will come into effect.

Will ViDA create a single European VAT registration number?

No. ViDA does not create a new pan-European VAT number. The Estonian VAT number will remain, but what can be declared under it will change in some situations due to the expansion of the OSS.

What are the key deadlines between January 1, 2027 and June 30, 2029?

A minor change will enter into force on 1 January 2027, mainly affecting OSS supplies of gas, electricity and heat. On 30 June 2029, the call-off stock regime will disappear permanently.

Will ViDA eliminate the EU's €10,000 distance selling threshold or the Estonian registration threshold?

No. ViDA does not affect two thresholds: the EU-wide distance selling threshold of 10,000 euros and the Estonian registration threshold of 40,000 euros remain unchanged.