UK: 
USA:
The EU’s current VAT Information Exchange System (VIES), which helps taxpayers to validate EU VAT numbers, will be phased out in 2032 to be replaced by a new ‘Central VIES’ database.
As part of the Digital Reporting Requirements (DRR) pillar of the EU’s landmark VAT in the Digital Age (ViDAViDA or 'VAT in the Digital Age', is an EU initiative proposed by the European Commission that seeks to modernise and harmonise VAT processes for member states, by embracing new technologies. It is aimed at updating processes for the management of VAT, and reduce the VAT gap and fraud. The proposal also aims to address challenges in the area of VAT raised by the development of the platform economy.) reforms, the new Central VIES portal will launch in July 2030 to provide a hub for online reporting and taxpayer identification.
The legacy VIES platform and its popular search engine for EU VAT number validation will close two years later.
By implementing a new Central VIES tool as part of the VIDA mandate, the European Commission is aiming to create a single space for businesses to manage:
- All intra-community transactional reporting as required under the DRR pillar.
- Integration with the Customs Surveillance System and the Central Electronic System of Payment.
- VAT number validation across the EU.
- Transactional data related to intra-EU transactions reported against their VAT numbers, which can be shared with customers.
DRR is one of three pillars that comprise the ViDA reforms, which were granted final approval by the European Commission last month.
Between July 2030 and 2035, it will become mandatory for businesses to digitally report on intra-community transactions and be able to issue and receive e-invoices.
The DRR reform aims to modernise VAT reporting across EU member states through harmonised digital processes. It introduces near real-time digital reporting for intra-EU B2B transactions via e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing., replacing traditional recapitulative statements.
This shift enhances transparency, fraud prevention, and tax compliance by enabling tax authorities to track transactions more efficiently. Under this pillar, e-invoicing becomes the default standard, subject to EU-wide technical specifications, reducing administrative burdens and compliance costs for businesses operating cross-border.
The DRR also allows national digital reporting requirements for domestic transactions to continue, provided they are compatible with EU norms. Scheduled to take effect in 2030, this reform fosters a more integrated digital VAT system, aiming to close the VAT gapThe difference between the amount of VAT revenue due to a tax authority and the amount actually collected and streamline tax processes in the EU’s internal market.
To automate the process of validating and verifying VAT numbers in the EU and across the rest of the world, we offer the award-winning LimeLyte® Entity Manager platform. Find out more about its extraordinary VAT number validation capabilities, as well as its master data management credentials here.
