Articles
DOI DOI: 10.5281/zenodo.18442800

VAT and E-Commerce: Digital Reporting, E-Invoicing, and Fraud Prevention in Online Marketplaces (Benchmarking the EU ViDA Reforms)

Mykyta Artemchuk1
  1. 1 Prom.ua, Ukraine

Abstract

E-commerce increases VAT compliance risks through high-volume, low-value
transactions, fragmented cross-border reporting, and platform-enabled business
models that complicate identification of the taxable person and the place of supply.
The European Union’s VAT in the Digital Age (ViDA) package, adopted on 11
March 2025, introduces a harmonised architecture for e-invoicing-based digital
reporting requirements for intra-EU B2B supplies by 2030, expands “single VAT
registration” through One-Stop Shop mechanisms, and strengthens platformrelated VAT rules supported by enhanced administrative cooperation. This study
develops an applied policy-and-operations framework for tax administrations and
online marketplaces to reduce VAT fraud and unintentional error. Using legalinstitutional analysis of ViDA and standards-based assessment of EN 16931, the
paper proposes (i) (i) transaction-level reporting aligned with interoperable invoice
semantics, (ii) platform governance and liability controls informed by OECD
guidance, and (iii) analytics-enabled risk scoring integrated into enforcement
workflows. Outputs include an end-to-end control architecture (Figure 1) and
a fraud-risk control matrix with practical KPIs (Table 1), benchmarked against
ViDA timelines and the VAT gap evidence base. The findings support a design
principle: shortening reporting latency and standardising invoice data improves
detectability and reduces opportunities for evasion when paired with data-quality
controls and operational enforcement capacity.

How to Cite

Artemchuk, M. (2026). VAT and E-Commerce: Digital Reporting, E-Invoicing, and Fraud Prevention in Online Marketplaces (Benchmarking the EU ViDA Reforms). Transnational Academic Journal of Economics, 2(3), 197–209. https://doi.org/10.5281/zenodo.18442800
Endnote/Zotero/Mendeley (RIS) BibTeX

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