EU ViDA Reform: What Businesses Need to Know About the Future of E-Invoicing

The EU is transforming the way business invoices are processed — and it’s far more than just moving from paper to PDF. With the introduction of the “VAT in the Digital Age” (ViDA) package, electronic invoicing (e-invoicing) is becoming a core part of the EU’s VAT reform strategy.

For companies operating in or trading with the EU, these changes mean more than digital record-keeping. Whether issuing B2B, B2G, or cross-border invoices, businesses will soon have to comply with structured, machine-readable formats to stay compliant and avoid penalties.

In this blog, we break down what ViDA changes mean, timelines, who is most affected, how to prepare, and why upgrading your invoicing and reporting infrastructure is no longer optional — it’s essential.

What Is ViDA?

ViDA is an EU initiative to modernise the Value Added Tax (VAT) system. It aims to combat tax fraud, increase transparency, and simplify VAT compliance across member states. The reform is structured around three key pillars:

1. Digital Reporting Requirements (DRR) & E-Invoicing

ViDA mandates the use of e-invoicing for cross-border transactions and introduces real-time digital reporting directly to tax authorities. This gives tax administrations immediate access to transaction data, enabling faster fraud detection and improved oversight.

2. Platform Economy

Online platforms facilitating short-term accommodation or passenger transport (e.g., Airbnb, Bolt) will be classified as “suppliers” and required to collect and remit VAT on behalf of users. This ensures consistent tax treatment across large and small operators.

3. Single VAT Registration

Businesses operating in multiple EU countries will be able to fulfil VAT obligations through one online portal in one language. This significantly reduces administrative burden and compliance costs for companies selling across borders.

Implementation Timeline

The VIDA initiative will be rolled out and implemented in phases: 

• July 2028 - expansion of the Single VAT Registration system

• January 2030 - platform economy rules apply

• July 2030 - mandatory e-invoicing and real-time reporting for cross-border B2B transactions

  
  

However, some member states are moving faster with their own timelines. For example, Belgium has mandated the use of Peppol for B2B e-invoicing by January 1st, 2026 and the Netherlands is planning to implement Platform Economy rules by July 1, 2028.

Who Will Be Affected?

While ViDA impacts almost all companies trading within the EU, some sectors will experience greater operational changes:

1. E-commerce & Online Marketplaces

Platforms facilitating the sale of goods or services will be responsible for VAT collection and remittance on behalf of small sellers. This creates a level playing field with larger operators and ensures consistent compliance.

2. Short-Term Rental & Transport Platforms

Platforms such as Airbnb and Bolt will be treated as suppliers for VAT purposes and must collect and remit VAT from July 2028. Certain member states may delay adoption until January 2030.

3. Businesses in Cross-Border B2B Trade

From July 2030, all B2B cross-border invoices must be issued electronically and digitally reported in real time. This will require major upgrades to accounting, ERP, and finance systems.

4. Energy & Utility Suppliers

Businesses supplying natural gas, electricity, heating, or cooling may need to adjust reporting and registration processes within the new Single VAT system.

5. SMEs

Smaller businesses may face financial and operational challenges in upgrading systems to meet mandatory e-invoicing and real-time reporting requirements.

Risks of Non-Compliance

1. Financial Penalties and Fines: Tax authorities can impose fines and charge interest for failing to meet new reporting requirements and e-invoicing mandates. 

   
   

2. Legal action: Businesses may face lawsuits and other legal challenges for non-compliance. 

   
   

3. Business Interruption: In cases of severe non-compliance, businesses may be banned from trading, subjected to suspensions of activity or mandatory shutdowns which can affect business reputation.

How Businesses Should Prepare

To meet ViDA requirements, businesses should take early and proactive steps:

1. Assess VAT Compliance Readiness

Businesses are strongly advised to carry out a thorough internal audit to evaluate how well their existing VAT reporting, invoicing, and IT systems meet ViDA standards. Early gap identification reduces the risk of disruption and compliance issues later on.

2. Upgrade Digital Infrastructure

The new mandate calls for a strong IT and ERP infrastructure. Businesses should explore investing in software that automates invoice generation, tax calculations, and cross-border transaction reporting, while also offering seamless integration with tax authority platforms to ensure full compliance.

3. Engage Legal & VAT Specialists

Implementation timelines vary between EU countries. VAT advisors can provide guidance on evolving national rules and help ensure compliance across all jurisdictions where business is conducted.

4. Monitor Regulatory Developments

As the initiative rolls out, regulatory updates will be ongoing. Businesses can stay ahead by monitoring tax authority websites, participating in industry seminars and events, and collaborating closely with trusted tax advisors.

5. Train Internal Teams

Finance, tax, compliance, and accounting teams must be fully informed of ViDA’s requirements. All personnel in these departments should receive training covering e-invoicing standards, digital reporting protocols, and VAT collection rules in the platform economy.

How Moxore Can Help

At Moxore, we help businesses upgrade and modernise their financial and reporting systems to achieve ViDA-ready compliance. We support organisations by:

• Upgrading or Implementing ERP & Accounting Systems

• Country-Specific Customisation

• Team Training & Support

• Full Digital Transformation Support

Ready for the EU’s New Digital VAT Era?

If your business operates, sells, or trades within the EU, the countdown has already begun. ViDA is not just an IT upgrade — it represents a complete shift in how VAT is processed and monitored.

Moxore can help you stay compliant, minimise disruption, and modernise your infrastructure ahead of the 2028–2030 rollout.