With the publication in the Official Journal of the European Union on March 25, 2025, the major European VAT reform (ViDA - VAT in the Digital Age) enters its operational phase. Starting from April 14 this year, Member States will be able to introduce mandatory e-invoicing without prior authorization from the European Commission.

The implementation of the electronic invoicing reform in European countries will follow various steps between 2028 and 2035: among the most significant changes are the mandatory electronic invoicing and Digital Reporting Requirements for B2B intra-EU transactions, effective from 2030, and the extension of VAT obligations to digital platforms providing transport and accommodation services, which individual countries will be able to adopt starting from 2028.

ViDA reform: key dates to remember

The ViDA (VAT in the Digital Age) package, adopted on March 11, 2025, by the Council of the European Union, came into effect on April 14. This important reform, which includes several regulations and aims at creating a single European digital market, will become fully operational by 2035.

Some of the main changes have already come into effect, while others will follow in the coming years. Below is the timeline of the ambitious European electronic invoicing reform:

• April 14, 2025: Member States may introduce the mandatory electronic invoicing requirement without the green light from the European Commission;
• July 1, 2028: the single VAT registration reform and the reverse charge obligation for non-identified suppliers comes into effect;
• January 1, 2030 (with optional application from July 1, 2028): digital platforms facilitating transport or accommodation services will be required to collect and remit VAT;
• July 1, 2030: the obligation of Digital Reporting Requirements (DRR) comes into effect, i.e., digital communication of B2B sales and purchases within the EU of goods and services subject to reverse charge;

By January 1, 2035, Member States requiring real-time digital transaction reporting will need to align their national systems with the European framework.

As specified by the European Commission, the VAT reform aims to simplify the monitoring of cross-border commercial transactions to combat tax evasion, which, according to data from the Digital B2B Observatory, drains about 61 billion euros per year from EU tax revenues — just under two thousand euros per second.

European Electronic Invoicing 2025: the ViDA package

On April 14, 2025, the first major innovation regarding European VAT was introduced: from that date, under the ViDA package, EU Member States are authorized to impose mandatory electronic invoicing (at the national level) without having to consult the European Commission.

We can therefore expect substantial changes in the coming months for those doing business with other EU countries: Germany has already introduced mandatory electronic invoicing on January 1 of this year, while Spain and France are preparing to comply within the next two years, along with many other EU countries.

Also starting from April 14, Member States may decide that the use of electronic invoicing by taxable persons established in their territory is not subject to the recipient's agreement: in simple terms, e-invoices can be sent even without the customer's prior acceptance.

Single VAT Registration from July 1, 2028

From July 1, 2028, the Single VAT Registration will also come into effect, a measure that will extend the use of the One Stop Shop (OSS) scheme to self-invoicing and supplies of goods and services subject to VAT in another Member State.

This scheme will also be extended to supplies of goods involving installation or assembly, as well as to supplies made on board ships, aircraft, and trains by non-resident taxable persons.

Already highly appreciated by e-commerce platforms and companies trading with several countries within the EU, the optional OSS scheme — which came into effect on July 1, 2021 — allows VAT to be declared and paid only in the Member State in which the business is registered. The competent tax authority then distributes the VAT amounts among the various EU States involved.

Starting from 2028, intra-EU commercial operations will become even simpler: a seller with warehouses and supply operations in two or three different countries will be able to register for VAT just once and be covered for all intra-community operations. They will also be able to handle VAT via an online portal.

Obviously, this new measure will apply only to businesses conducting exclusively the transactions covered by the new regulation. Intra-community purchases from third parties, supplies of goods, and exports will still require a VAT position in each of the countries involved.

European Electronic Invoicing: DRR requirement

Another major step in the progression of the VAT reform in Europe is scheduled for July 1, 2030, when the e-invoicing obligation for all B2B intra-EU transactions will come into effect.

At the same time, a mandatory notification system will be introduced for Digital Reporting Requirements (DRR), meaning businesses must report transaction data to the relevant tax authority. This obligation will apply to all B2B purchases within the EU of goods and services subject to the reverse charge mechanism (e.g., operations by non-resident entities, subcontracting in the construction sector, supplies of mobile phones and game consoles, etc.).

From that date, therefore, many European companies will be required to report electronic invoice data at the time the invoice is issued. This new mechanism will replace the previous procedure involving the Intrastat form.

As the Commission explained, the ViDA package introduces “a real-time digital reporting mechanism based on electronic invoicing for businesses operating cross-border within the EU.”

The European VAT reform will be complete in 2035: by that date, Member States that already have real-time digital transaction reporting — such as Italy — will need to align their systems with EU standards.

European VAT Reform: what changes for Italian businesses

As for Italy, the changes will be very gradual: the current electronic invoicing system with transmission to the Interchange System (SDI) is already capable of processing invoices compliant with the new European standards. A service is already available on Openapi that allows you to automate the process of sending, signing, receiving and digitally storing your electronic invoices to/from SDI via API.

As specified by the European Commission, countries with a national transaction-based reporting system may maintain it beyond July 2030: gradual alignment with ViDA requirements will begin on that date and may continue until 2035.

The adjustment will also apply to other EU countries, starting with those that have just introduced or are preparing to introduce mandatory electronic invoicing, such as Germany, Spain, France, and Poland. Italian companies that do business with clients and suppliers based in these countries will soon be able to include EU customers within their automatic invoicing systems, significantly simplifying procedures.

Those doing business with countries like Bulgaria, the Czech Republic, the Netherlands, or Sweden — still behind on the e-invoicing front — will need to wait until 2030.