The European Union is committed to introducing e-invoicing in the shape of VAT in the Digital Age (ViDA) as part of the digital transformation. This will benefit not only businesses but will also contribute to a more sustainable and transparent economy. Businesses are currently making the preparations required to comply with the new regulations, particularly in relation to the more stringent government control that is expected via Continuous Transaction Control (CTC) and tax audits.  

ViDA: what is it?
With the introduction of ViDA regulations, the European Commission aims to harmonise the procedures for VAT returns. Businesses will be required to provide VAT information in real-time through e-invoicing. Within the EU, businesses will be required in the near future to process and report their invoices electronically. The aim is to tackle VAT fraud, reduce the administrative workload and increase the effectiveness of VAT charges. Although the legislation faces another round of voting in the European Parliament, it is almost certain that it will come into force in 2030. 

What does this mean for businesses?
The transition to e-invoicing will require technological and organisational adjustments. Businesses will have to upgrade their financial systems and comply with certain regulations, such as the European EN 16931 standard and the General Data Protection Regulation. Making the required adjustments on time offers several benefits, including lower costs, improved cashflow and a competitive advantage.

Businesses that are already making the necessary preparations will be able to make a smoother transition to e-invoicing

European countries getting ready
E-invoicing is already mandatory for companies that do business with the government but this does not currently apply to companies that send invoices to each other within the EU. However, many European countries are already preparing for the introduction of new legislation that will make e-invoicing mandatory for all businesses. France, for example, is already phasing it in and from 1 September 2027 on, all French organisations will be required to send and receive e-invoices. Germany is adopting a similar approach in which the period of transition will be determined by the size of the company. As of 1 January 2028, e-invoicing will be mandatory for all businesses in Germany. In Belgium,
e-invoicing will be required from 1 January 2026. 

And the Netherlands?
It is not yet clear how the Netherlands intends to approach the issue of e-invoicing. However, it is almost certain to become the new standard here, too. Businesses that are already making the necessary preparations will be able to make a smoother transition to e-invoicing. The transition is mandatory but it will also enable businesses to operate more efficiently and sustainably. 

Questions?
If you have any questions regarding the implementation of
e-invoicing or require support in making the transition, Meijers Credit will be glad to help in its role as partner in credit management.