Digital Taxation and the Platform Economy Policy Design Lessons from the EU VAT in the Digital Age (ViDA) Initiative for Non‑EU Jurisdictions
Year: 2025
Type: article
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
Author: Murty, A. V. N.
Institution: Koneru Lakshmaiah Education Foundation
Language: English
Topic: Taxation and Legal Issues
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7128368114
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