Single VAT Registration – The End of Multiple VAT Registrations?

VAT compliance in cross-border EU business has so far often been associated with significant administrative effort. In many cases, companies must register for VAT in several Member States – for example, in cases of local supplies, stock movements, or certain services. With the reform initiative VAT in the Digital Age (ViDA), the EU aims to significantly reduce these multiple registrations in the long term.

A key component of this reform is the introduction of Single VAT Registration (SVR). The goal is for businesses to require only one VAT registration within the EU and to report transactions in other Member States via centralized reporting systems.

The core idea of SVR is not to create a completely new structure, but rather to significantly expand existing systems, in particular the One-Stop Shop (OSS) and the Import One-Stop Shop (IOSS). Through this expansion, additional types of transactions are expected to be reportable via centralized EU procedures.

Implementation Timeline

Implementation will take place gradually over several years. The ViDA package was adopted in March 2025 and is expected to be fully implemented by around 2035.

For SVR, the following milestones are particularly relevant:

1. From 2027: first extensions of existing OSS rules
2. From July 2028: core SVR reforms and mandatory reverse charge for non-established businesses in certain cases
3. Further digitalization steps until 2035

Relationship with OSS and IOSS

SVR will not completely replace OSS and IOSS but will instead build on them. The OSS already allows certain cross-border B2C transactions to be reported through a single return. In the future, OSS is expected to be significantly expanded – for example, to additional types of supplies and services and, in some cases, to domestic transactions carried out by non-established businesses.

At the same time, the reverse charge mechanism for B2B transactions will be expanded. In many cases, the customer will be liable for VAT if the supplier is not established in the Member State of taxation.

Opportunities for Businesses

Internationally active companies may benefit significantly:

1. Reduction of administrative costs
2. Fewer local VAT registrations
3. Simplified processes via centralized portals
4. Greater planning certainty for cross-border business models

In the long term, businesses may be able to declare VAT for several EU countries via a single portal and, in some cases, even in one language.

Open Practical Questions and Risks

Despite the clear objectives, there are still uncertainties regarding practical implementation. Companies should in particular assess:

1. Which VAT registrations can actually be eliminated in the future?
2. Which transactions will still require local VAT registration?
3. How will transition phases between old and new systems work?
4. What will be the impact on VAT refund procedures?

Especially during the transition phase until 2028, a detailed review of existing registrations and business models is recommended.

Conclusion

Single VAT Registration represents a major step towards a simplified European VAT system. For many businesses, it may lead to significant administrative relief in the medium term. At the same time, the reform will be implemented only gradually and requires early preparation. Companies should therefore already start assessing how their VAT registration and compliance strategy may change in the future.