European agreement on e-invoicing is closer than ever: what it means for your company

With the adoption of the ‘European VAT system of the future’, a lot is about to change over the coming years. Read our summary to discover what that will mean for you.

According to the European Economic and Financial Affairs Council (Ecofin), e-invoicing will be the norm from 2030 onwards. That ruling has been agreed upon on the 5th of November. It is expected to be ratified by the European Parliament soon as well. This will end ambiguity around the introduction of e-invoicing regulation.

Viva la ViDA

Ecofin’s initiative was named ViDA: VAT in the Digital Age. Over the past few years, several countries have already introduced obligations around e-invoicing – in Belgium it will be mandatory starting 1 January 2026 – and from 2030 on it will apply across EU territory. The aims are clear: to facilitate trade between member states, eradicate unfair competition and combat fraud by making everyone follow the same rulebook. The single market should thus become even more open.

ViDA pushes all 27 member states towards the digitisation of their VAT processes. Both internally and between countries, e-invoicing and e-reporting will become the norm. Initially, it is aimed at EU-wide implementation; by 2035 ViDA will ecourage the harmonization of systems already in use by different member states.

In some countries, there has already been done quite some work ahead of these deadline(s). In Belgium, for example, the choice was made to work with the Peppol platform. From 1 January 2026, companies based in Belgium will be required to align their digital invoicing and reporting processes with the accepted platform. Belgium has taken on a pioneering role in preparing its market for the future of international VAT obligations. Other countries already using e-invoicing systems include Italy, France, Poland, Germany and Romania.

Tangible consequences

Specifically, ViDA will bring some palpable consequences for entrepreneurs and businesses:
1. There will be a digital reporting obligation (DRO) from 1 July 2030. This will make it mandatory to provide a structured e-invoice compliant with the EU standard within 10 days of a taxable event. This data must be shared in real time with the relevant national VAT authority.
2. In addition, individual member states may impose additional domestic obligations. Cross-border transactions will continue to require companies’ consideration of different transaction systems per country as well. Those working across borders within the EU may still need different software solutions to be fully compliant.
3. Online marketplaces will have greater responsibility in collecting VAT. They will become responsible for collecting and remitting VAT when suppliers or third parties sell goods or services through their platform on which no VAT is charged, for example in the case of private individuals or for small, exempt businesses. ViDA calls this the ‘platform fiction’.

What about your company?

If there are still ambiguities or uncertainties for your company, or if you would like to analyse the consequences for your company with us, you can always reach out. We will be happy to check which steps your company needs to take to be ready for the transition and how Arco Information can provide the necessary support.