First pillar of the ViDA package:
e-invoicing and reporting

On 11 March 2025, the EU adopted the ViDA package. This initiative significantly changes VAT rules, particularly in the areas of e‑invoicing and digital reporting. Current VAT return and reporting obligations are prone to errors and fraud. With ViDA, the EU aims to address this by digitalising and standardising processes. In this article, you will learn what the first pillar (e‑invoicing and digital reporting) means for your organisation.

What is the ViDA package?

ViDA is an EU initiative designed to harmonise and modernise the VAT system. The package consists of three pillars:

1. First pillar: e‑invoicing and reporting
2. Second pillar: new VAT rules for the platform economy
3. Third pillar: a single VAT registration within the EU

This article focuses on pillar 1: e‑invoicing and reporting.

ViDA: mandatory e‑invoicing and reporting

The most important step within the ViDA package is the introduction of a European standard for e‑invoicing and digital reporting. This will be implemented in three phases:

1. As of April 2025: Member States may make e‑invoicing mandatory for domestic transactions. They may also require customers to accept e‑invoices. This allows countries to prepare for a broader obligation before 1 July 2030. In countries such as Italy, Poland, Belgium and Germany, these requirements already apply.

2. From 1 July 2030: You must issue structured e‑invoices for cross-border transactions within the EU. This applies to both B2B and B2G transactions.

You must issue the invoice within ten days of the transaction date or any advance payment. You then digitally report the invoice data to the tax authorities, almost in real time.

The EU prescribes a standard format. New invoice requirements also apply, such as including the bank account number.

Please note! B2C transactions are not covered by the EU-wide digital reporting obligation. Member States may introduce national rules for these transactions.

3. From 1 January 2035: The EU will further harmonise the rules for e‑invoicing and digital reporting. This may also apply to domestic transactions, if Member States choose to implement it.

Please note! The EC Sales List will be abolished. Instead, EU transaction data will be exchanged almost in real time via a renewed EU system (VIES). This gives tax authorities greater insight and reduces the risk of errors and fraud.

What is e‑invoicing?

An e‑invoice is an electronic file in a structured format, such as XML or UBL (Universal Business Language). This enables automated processing and speeds up your administrative processes. You will need specific software to manage this.

You must issue e‑invoices within ten days of the transaction. This obligation applies to cross-border transactions subject to digital reporting. For domestic transactions, Member States decide whether this requirement applies.

In addition to e‑invoicing, digital reporting plays a key role. This involves automatically sharing invoice data with tax authorities almost in real time. It increases transparency, enables faster checks and reduces the risk of errors and fraud.

ViDA in the Netherlands: what to expect

The Dutch government has not yet made final policy decisions on the implementation of the ViDA package. More clarity on e‑invoicing and digital reporting is expected this summer.

The current timeline is as follows:

1. 2026: development of implementation plans
2. 2026 – 2028: definition of technical standards
3. 2028 – 2030: implementation and preparation by businesses

This timeline provides guidance but may change. It is therefore important to closely monitor developments related to ViDA.

Impact of ViDA on your business

You should assess in time whether your invoicing and reporting systems are suitable for e‑invoicing and digital reporting. This requires collaboration between your finance and IT departments.

Although 1 January 2030 may seem some way off, it is important to act now—especially if you operate across borders or in multiple EU countries. Map out as soon as possible what the ViDA package means for your organisation. Check whether your systems are suitable and identify which adjustments are needed.

If your systems are not yet compliant, you can still adapt or replace them in time. Create a clear action plan that outlines the necessary steps and timeline.