What question did this study set out to answer?

The aim is to extract actionable policy design lessons from the EU's ViDA initiative for non-EU jurisdictions to enhance VAT compliance.

February 11, 2026Open Access

Digital Taxation and the Platform Economy Policy Design Lessons from the EU VAT in the Digital Age (ViDA) Initiative for Non‑EU Jurisdictions

Key Points

The aim is to extract actionable policy design lessons from the EU's ViDA initiative for non-EU jurisdictions to enhance VAT compliance.
Conducted comparative legal policy analysis based on the EU ViDA framework.
Identified three transferable modules for effective VAT implementation: digital reporting, supplier liability, and single registration.
Developed a control-impact matrix alongside future scenario projections for VAT-gap reduction.
Demonstrated effective sequences for implementing digital VAT policy.
Identified options to align legal liability with data-driven compliance enhancement.
Projected significant VAT-gap reductions through the proposed frameworks from 2023 to 2035.

Abstract

Platform-mediated business models have expanded the scale, speed, and cross-border footprint of taxable consumption while weakening tax-administration visibility under conventional value-added tax (VAT) compliance cycles. This paper derives implementable policy design lessons for non‑EU jurisdictions from the European Union’s VAT in the Digital Age (ViDA) package (Council Directive (EU) 2025/516; Council Regulation (EU) 2025/517; Council Implementing Regulation (EU) 2025/518). Using comparative legal policy analysis anchored in the destination principle and OECD consistent VAT design, the study decomposes ViDA into three transferable modules: (A) digital reporting requirements (DRR) and structured e-invoicing, (B) platform-deemed supplier liability in selected sectors, and (C) single registration/simplification. Results provide sequencing options and a control–impact matrix and demonstrate present–future comparisons through scenario projections of VAT-gap reduction (2023–2035). The paper concludes that effective digital VAT policy requires aligning legal liability with information advantage, building a data-to-action compliance loop, and applying SME proportionality safeguards to preserve innovation and contestability

Read Full Paperexternally

Bookmark

View Full Paper

Cite This Study

A. V. N. Murty (Tue,) studied this question.

synapsesocial.com/papers/698c1bef267fb587c655df27 https://doi.org/https://doi.org/10.5281/zenodo.18442890

Bookmark

View Full Paper