ViDA: E-invoicing and digital reporting
ViDA: E-invoicing and digital reporting
On 11 March 2025 the EU Member States formally adopted the VAT in the digital age proposals. In this article we discuss the first pillar of ViDA: e-invoicing and digital reporting. For an overview and timeline of ViDA we refer to our earlier article.
E-invoices must comply with the European standard laid down in Commission Implementing Decision 2017/1870 on electronic invoicing and the list of its syntaxes pursuant to Directive 2014/55/EU (on electronic invoicing in public procurement). The standard format is a structured electronic format which allows for automated and electronic processing.
The deadline of issuing an invoice is set at 10 days following the chargeable event.
The rules enter into application as of 1 July 2030.
The data should be submitted to the Member State which issued the VAT identification number used for the transaction. The data collected by the Member States will be subsequently transmitted to a central electronic VAT information exchange system (central VIES) within one day. Here the data is automatically cross-checked and aggregated.
The obligation to issue a recapitulative statement will be removed.
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E-invoicing
The obligation to issue e-invoices covers only the transactions subject to digital reporting on cross-border transactions (see below).E-invoices must comply with the European standard laid down in Commission Implementing Decision 2017/1870 on electronic invoicing and the list of its syntaxes pursuant to Directive 2014/55/EU (on electronic invoicing in public procurement). The standard format is a structured electronic format which allows for automated and electronic processing.
The deadline of issuing an invoice is set at 10 days following the chargeable event.
The rules enter into application as of 1 July 2030.
Digital reporting on cross-border transactions
Mandatory digital reporting applies on cross-border transactions which cover:- Intra-community supplies
- Transfer of own goods (unless the special scheme is used)
- Services on which the VAT is reverse charged (unless the service is exempted without a right to deduct VAT)
The data should be submitted to the Member State which issued the VAT identification number used for the transaction. The data collected by the Member States will be subsequently transmitted to a central electronic VAT information exchange system (central VIES) within one day. Here the data is automatically cross-checked and aggregated.
The obligation to issue a recapitulative statement will be removed.
Domestic digital reporting
EU Member States are not required to implement digital reporting for domestic transactions. However, if they choose to implement this, they should do so in conformity with the cross-border digital reporting scheme. Member States that already have such a system in place should adapt it to the system for cross-border transactions. They have until 2035 to take care of this.What can you do?
The new rules fundamentally change the way in which data is reported to the tax administration on cross-border transactions and subsequently analyzed. It is important that you prepare yourself for this change in a timely manner as these changes require amendments in your business and IT processes. It is also important to make sure your supplies are classified correctly for VAT as mistakes will be easily detectable, leading in time consuming question from the tax administration or even worse, a potential classification of your transactions as fraudulent. BDO can help you with both the implementation of the new rules within your business as well as with the classification of transactions.More information
If you have questions regarding ViDA we are of course happy to help. Please contact one of our VAT advisors for more information.Contact