ViDA and digital reporting: what e-invoicing means for your business

Major changes to EU VAT were proposed at the end of 2022. On 5 November 2024, EU finance ministers approved the amended ViDA proposal, paving the way for formal adoption on 11 March 2025.

ViDA covers three main areas:

1. Digital reporting and e-invoicing
2. VAT changes for platforms and online services
3. Single VAT registration and OSS

This article gives a detailed overview of the adopted changes related to DRR and e-invoicing, and comments briefly on their impact on businesses. For information on the other two pillars, please refer to the links above.

Changes from 2025

From early 2025 (20 days after formal adoption on March 11th 2025), Member States no longer need a derogation to implement domestic e-invoicing requirements for established taxpayers.

Member States may introduce mandatory e-invoicing for domestic B2B and B2C transactions without seeking approval from the European Commission. Businesses should be aware this may leave limited time to prepare.

E-invoices must comply with the European standard on e-invoicing (EN 16931), as adopted by the Commission Implementing Decision (EU) 2017/1870 and Directive 2014/55/EU.

Changes from 1 July 2030 

E-invoicing becomes the default 

From 1 July 2030, e-invoicing will become the default method for issuing invoices. Key changes include: 

• No recipient acceptance is required 
• E-invoices must follow a structured electronic format that enables automatic processing 
• A new definition of e-invoice will apply 

Businesses must issue structured e-invoices including all required data within 10 days of the chargeable event and report the data to national VAT authorities in real time. 

The recipient of goods or services must also report the transaction within 5 days. 

Scope of the DRR system 

The EU DRR system (e-invoicing and digital transaction-based reporting – DTBR) will apply to: 

• Intra-Community supplies and acquisitions of goods 
• Cross-border B2B supplies taxed in a Member State where the supplier is not established 
• Supplies subject to the extended mandatory reverse charge (effective from 1 July 2028) 

E-invoice content requirements 

New data fields must be included on e-invoices: 

• Bank account identifier for payment 
• Reference to the initial invoice number (for corrective invoices) 

Summary invoices (covering multiple supplies in the same calendar month) will only be permitted under specific conditions and must be issued within 10 days following the end of the month.

Digital transaction-based reporting (DTBR) 

From 1 July 2030, the DTBR will replace the European Sales and Purchase Lists. 

It will include: 

• Intra-EU transactions (excluding call-off stock transfers, which will be phased out) 
• Supplies of goods and services subject to the extended reverse charge (included in ESLs from 1 July 2028, then in DTBR from 1 July 2030) 

Invoice data must be transmitted at transaction level, electronically, and immediately after the invoice is issued or should have been issued. Member States will provide transmission mechanisms and must allow use of the European Standard.

Reporting purchases within the EU 

Recipients of goods or services will be required to report intra-Community acquisitions, including those subject to the extended reverse charge, within 5 days. 

This dual reporting mechanism aims to reduce VAT fraud by matching supplier and customer data. 

Replacement of the current VIES 

The current VIES system will be replaced by a Central VIES platform, which will: 

• Store data on cross-border operations 
• Cross-check and aggregate transaction data 
• Provide access by VAT registration number 
• Integrate data from customs and future payment systems like CESOP 
• Include real-time VAT registration data from national authorities 

Harmonisation of domestic DRRs 

From 1 July 2030, domestic digital reporting regimes must align with the EU-wide DRR system. This includes near real-time, transaction-level reporting and compatibility with the European Standard. 

Member States already operating domestic DRRs must bring them into full alignment by 2035. 

Stay informed 

These changes will significantly reshape VAT compliance for businesses operating across the EU. With multiple implementation stages and obligations varying by date and Member State, early preparation is essential. 

To explore the full picture and stay ahead of the evolving VAT landscape, visit our ViDA hub for insights, timelines and practical guidance across all three pillars of the reform.