The European Union is rapidly introducing digital changes to its value-added tax (VAT) system, with the aim of making trade within the Union simpler, faster, and more transparent. The latest decisions from February 2026 confirm that digitalization is becoming the standard of the European tax system, which is particularly significant for Serbia as it prepares to align its own system with European regulations.
New rules for electronic invoicing now also cover transactions between businesses (B2B). This means companies will be able to exchange electronic invoices and data in real time, while government authorities will find it easier to monitor and control the flow of goods and money. This reform, better known as “VAT in the Digital Age” (ViDA), is expected to be completed by 2030 and will allow for a more modern and better-connected tax system in Europe.
At the same time, the European Commission is working to further simplify tax procedures and reduce bureaucracy for businesses. In practice, this means companies will have less paperwork, and all VAT reporting and payments for international trade can be carried out in one place, thanks to the expansion of the One-Stop-Shop system.
For Serbia, these changes are especially important because of the introduction of the European VAT Information Exchange System (VIES), which enables the exchange of data on VAT taxpayers between member states and is a prerequisite for joining the EU. When Serbia becomes a member, the Tax Administration will be able to check and monitor international transactions within the EU much faster and more efficiently, which is important, among other things, for preventing fraud.
“The EU is moving towards greater automation and real-time data exchange, which will become mandatory from 2030. For countries like Serbia, this means that the systems being introduced now should be aligned with these requirements from the very beginning,” explains Birger Nerré, a tax expert on the project “EU Support for Public Finance Management”. He explains that the introduction of VIES is not just a technical change, but part of a broader process of modernizing the Serbian Tax Administration to make it faster and more effective. Also, without VIES, Serbia will not be able to be part of the common European market.
The project “EU Support for Public Finance Management”, supported by the European Union through IPA 2021 and implemented by the United Nations Development Programme (UNDP), in partnership with the Centre of Excellence in Finance (CEF) and the Ministry of Finance of the Slovakia, is assisting the Tax Administration in the process of preparing for the introduction of the VIES system. The support includes the development of new software solutions, staff training, and assistance in aligning national regulations with European standards.