Articles
DOI DOI: 10.5281/zenodo.18442890

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. Murty1
  1. 1 KLEF Business School, KL University, India

Abstract

Platform-mediated business models have expanded the scale, speed, and crossborder 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

How to Cite

Murty, A. V. N. (2026). Digital Taxation and the Platform Economy Policy Design Lessons from the EU VAT in the Digital Age (ViDA) Initiative for Non‑EU Jurisdictions. Transnational Academic Journal of Economics, 2(3), 210–217. https://doi.org/10.5281/zenodo.18442890
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