The European Commission has released its official Implementation Strategy for the VAT in the Digital Age (ViDA) package, placing e-invoicing at the heart of Europe’s digital tax reform. From 1 July 2030, e-invoicing will become mandatory and the default method for all cross-border B2B transactions across the EU. Member States may also begin to roll out domestic e-invoicing obligations as early as 14 April 2025.
The Commission highlights that the new Digital Reporting Requirements (DRR) will significantly cut VAT fraud by up to €11 billion annually while reducing compliance costs for businesses by €4.1 billion each year. E-invoices will follow the European standard (Directive 2014/55/EU), ensuring interoperability and eliminating fragmentation. By 2035, any Member State operating domestic real-time reporting systems must align them fully with the EU’s cross-border DRR model, achieving a harmonized framework.
To ensure a smooth transition, the Commission will work closely with Member States, businesses, and EU institutions. A central VIES system will be developed to collect and exchange invoice data across borders, with technical specifications finalized by 2026 and testing starting in 2029. Regular explanatory notes and workshops under the Fiscalis Programme will also provide businesses with guidance to adapt IT systems on time.
This e-invoicing reform represents the cornerstone of ViDA, modernizing VAT administration across Europe. With mandatory cross-border e-invoicing, the EU aims not only to safeguard tax revenues but also to simplify compliance and create a level playing field for businesses trading across the Single Market.
