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

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

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-09-30
DOI
https://doi.org/10.5281/zenodo.18442890
Primary Topic
Corporate Taxation and Avoidance
Type
article
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article

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

A. V. N. Murty
Zenodo (CERN European Organization for Nuclear Research)
Corporate Taxation and Avoidance
article

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

A. V. N. Murty
article en

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

Zenodo (CERN European Organization for Nuclear Research)
KLE Academy of Higher Education and Research (IN)
Industry, innovation and infrastructure
Openalex Percentile: Top 15%
Corporate Taxation and Avoidance
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