For finance, tax and IT departments, e-invoicing is no longer a distant compliance topic. It is rapidly becoming a strategic business priority that requires timely preparation.
ViDA: a major transformation of EU VAT reporting
The ViDA package represents one of the most significant VAT reforms introduced by the European Union in recent decades. One of its primary objectives is to modernise VAT administration through digital reporting and structured electronic invoicing. Under the new rules, intra-EU B2B transactions will ultimately become subject to Digital Reporting Requirements (DRR) based on e-invoicing.
The reform will be introduced in stages:
- 2025: Member States can introduce mandatory domestic e-invoicing under specific conditions without following the previous EU derogation process.
- 2027: The first ViDA amendments relating to Single VAT Registration become effective.
- 1 July 2028: The expansion of Single VAT Registration and the One Stop Shop (OSS), broader application of the reverse charge mechanism, and various platform economy measures take effect.
- 1 July 2030: Mandatory digital reporting and e-invoicing for cross-border intra-EU B2B transactions begin.
- 2035: Existing domestic digital reporting systems must be aligned with the EU model.
What exactly is changing?
One of the most important aspects of ViDA is that a PDF invoice will no longer qualify as an electronic invoice under the new EU framework. Instead, invoices must be issued in a structured electronic format that can be processed automatically by both businesses and tax authorities. The European standard EN 16931 will play a central role in ensuring interoperability across the EU.
In practical terms, this means:
- Structured invoice formats instead of PDFs.
- Automated transmission of invoice data.
- Near real-time digital reporting of transaction data.
- Significantly higher data quality requirements.
- Reconciliation between e-invoicing data and VAT reporting.
For many businesses, adapting systems and processes may require substantial investment, planning and time.
Dutch developments: towards a Peppol-based future
In the Netherlands, policy discussions are also progressing. Although no formal legislation has yet been introduced, the Dutch Ministry of Finance has explored how e-invoicing and digital VAT reporting could be implemented.
The Ministry published a report examining the introduction of e-invoicing and digital VAT reporting in the Netherlands. The report recommends applying e-invoicing not only to intra-EU transactions, as required under ViDA, but also to domestic transactions. It further suggests introducing domestic e-invoicing before the EU deadline for cross-border e-invoicing. In addition, the report recommends adopting a single infrastructure for both e-invoicing and digital reporting: Peppol.
The report also advocates alignment with:
- The European invoice standard EN 16931.
- The e-invoicing data requirements introduced under ViDA.
- A harmonised digital reporting framework.
While legislation has not yet been proposed, these recommendations provide a clear indication of the direction Dutch policy may take in the coming years.
Domestic e-invoicing mandates continue to expand
The shift towards mandatory e-invoicing is not limited to cross-border transactions. Several Member States have already implemented, or are in the process of implementing, domestic e-invoicing and digital reporting regimes.
Current and upcoming examples include:
- Italy, where B2B e-invoicing has been mandatory since 2019.
- Romania, which has introduced mandatory domestic B2B e-invoicing.
- Belgium, where mandatory B2B e-invoicing applies from 1 January 2026.
- Poland, where the KSeF system is being introduced in phases beginning in February 2026.
- France, where mandatory e-invoicing and e-reporting begin in September 2026.
- Germany, where receiving e-invoices is already mandatory and additional e-invoicing obligations will apply from 2027, followed by a broader rollout.
This growing patchwork of national requirements means multinational businesses may need to manage several country-specific e-invoicing and reporting processes simultaneously before ViDA delivers greater harmonisation across the EU.
Latest July 2026 developments: implementation accelerates in Belgium, Germany and Luxembourg
The summer of 2026 brought several important developments that demonstrate how European countries are moving from e-invoicing policy discussions to practical implementation.
Belgium moves beyond e-invoicing towards near real-time VAT reporting
Belgium introduced mandatory B2B e-invoicing on 1 January 2026. In July 2026, the next phase of the country's digital VAT strategy became clearer. On 18 July 2026, the Belgian Council of Ministers approved a preliminary draft law introducing near real-time VAT e-reporting for domestic B2B transactions, with a planned start date of 1 January 2028. Under the proposal, both suppliers and customers would electronically report specific invoice data to the Belgian VAT authorities through a Peppol-based infrastructure.
For businesses, this would represent a significant change. Compliance would no longer be limited to exchanging structured invoices. Organisations would also need to ensure invoice data is complete, accurate, validated and capable of being reported quickly. Belgium’s proposal therefore reflects a broader trend: e-invoicing is increasingly becoming the foundation for near real-time VAT reporting.
Germany signals a move towards AI-driven VAT controls
Germany also announced important developments in July 2026. On 16 July 2026, the German Ministry of Finance presented a broader action plan to combat tax and financial crime, with structured electronic invoicing playing a central role. The plan refers to a future real-time VAT reporting system and a central federal-state data platform that would use invoice data for risk analysis and fraud detection.
Although the July 2026 action plan is not yet legislation, it provides a clear indication of the direction of travel. Germany appears to be preparing for a VAT control environment in which structured invoice data supports faster and more data-driven risk analysis.
Germany’s existing e-invoicing roadmap already requires businesses to be capable of receiving structured e-invoices from January 2025. Mandatory issuance requirements will gradually expand from 2027 and apply more broadly from 2028. The July announcement confirms that Germany views structured invoice data as a key building block for future digital VAT controls.
Luxembourg launches domestic B2B e-invoicing proposal
Luxembourg also made progress in July 2026. The Government Council approved a draft law on 17 July 2026, and Draft Law No. 8815 was subsequently submitted to Parliament on 30 July 2026. The proposal would extend mandatory electronic invoicing to domestic B2B transactions between businesses established in Luxembourg.
Under the proposal, suppliers and recipients established in Luxembourg would be required to exchange invoices in a structured electronic format that enables automated processing and complies with the European standard. Traditional PDF invoices would no longer qualify as valid electronic invoices.
Implementation would be phased. Businesses would need to be able to receive electronic invoices from 1 January 2028. The obligation to issue e-invoices would apply from 1 July 2028 for large and medium-sized businesses and from 1 January 2029 for other in-scope businesses. Luxembourg intends to use Peppol as both the interoperability standard and delivery network.
A clear regional trend
Taken together, the July 2026 developments in Belgium, Germany and Luxembourg highlight a broader European trend. E-invoicing is becoming much more than a digital version of a PDF or paper invoice. Governments are increasingly using structured invoice data as the foundation for digital VAT reporting, enhanced audit capabilities and improved fraud detection.
Businesses operating across multiple European countries should therefore approach e-invoicing as a cross-functional transformation project involving tax, finance, procurement, accounts payable, accounts receivable and IT.
Why preparation should start now
Many businesses still view 2030 as a distant milestone. However, experience in countries that have already introduced e-invoicing shows that implementation projects often take significantly longer than anticipated.
Technology readiness
ERP systems and invoicing tools should be assessed to determine whether they can:
- Create structured electronic invoices.
- Receive structured electronic invoices.
- Support digital reporting requirements.
- Accommodate country-specific e-invoicing formats.
Data quality
Meeting future requirements will depend on accurate transactional data. Businesses should evaluate:
- VAT determination processes.
- Customer and supplier master data.
- Invoice content and data mapping.
- Reporting and reconciliation procedures.
Governance and processes
The move towards digital reporting is not solely a tax initiative. It affects:
- Tax and finance teams.
- Logistics and procurement functions.
- Accounts receivable teams.
- IT and ERP functions.
A successful implementation therefore requires effective cross-functional collaboration.
Looking ahead
The adoption of ViDA has established a clear direction for VAT compliance within the European Union. The future of VAT reporting is digital, data-driven and increasingly real-time. At the same time, Member States continue to introduce domestic e-invoicing initiatives that precede the EU-wide deadlines for cross-border trade.
Businesses that begin preparing now can not only reduce future compliance risks but also use this transition as an opportunity to improve invoicing processes, increase automation and strengthen data quality.
With 2030 approaching and national mandates already emerging across Europe, the key question is no longer whether e-invoicing will affect your organisation, but whether your organisation will be ready when it does.
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