The European Commission proposed a series of measures called ViDA (VAT in the Digital Age) in December 2022. The initiative aims to modernize the VAT system, making it more beneficial for businesses, more resistant to VAT fraud, and promoting digitalization. The proposal contains three parts: 1) a real-time digital reporting system based on e-invoicing; 2) updated VAT rules for the platform economy; and 3) a single VAT registration for businesses selling to consumers across the EU. The first part intends to fight VAT fraud, simplify procedures, and save businesses €4 billion annually in compliance costs. The second part makes platform companies in specific sectors responsible for collecting and remitting VAT when their users don’t. The third part expands the one-stop-shop (OSS) system to all businesses selling to consumers, potentially saving businesses €8.7 billion annually. Despite broad agreement on the proposal, the timeline and lack of clear definitions have drawn criticism. The proposal is seen as a step towards modernizing the VAT system, but concerns remain about its complexity and potential increased burdens on businesses.