Mandatory e-invoicing for B2B and B2G in Europe: Implementation deadlines
The European Union, striving to meet the challenges of the evolving digital economy, has proposed the “VAT in Digital Age” (ViDA) package. This initiative, presented by the European Commission in December 2022, aims to simplify and streamline the VAT system in the context of the modern economy. One of the key elements of this package is the introduction of mandatory e-invoicing and digital transaction reporting.
Mandatory e-invoicing in the EU
The ViDA (VAT in the Digital Age) package does not create a single mandatory domestic e-invoicing system for all EU Member States. Instead, it establishes a common framework for digital VAT reporting and facilitates the introduction of national e-invoicing systems by individual Member States. Member states will be able to impose the requirement of issuing e-invoices without prior consent from the European Commission. Moreover, the new regulations allow for the issuance of e-invoices without needing approval from clients, which means that businesses should prepare for a gradual increase in the use of structured electronic invoices as more Member States introduce national e-invoicing frameworks aligned with EU legislation.
Implementation deadlines for mandatory e-invoicing in EU countries:
| Country | Mandatory B2B e-invoicing | Mandatory B2G e-invoicing |
|---|---|---|
| Poland | Yes – mandatory KSeF from 1 February 2026 for the largest taxpayers, from 1 April 2026 for most businesses, and from 1 January 2027 for the smallest taxpayers covered by transitional rules. | No (only mandatory for public administration units to receive e-invoices) |
| Germany | No (planned for 01.01.2027 – for companies with turnover over 800,000 euros, and 01.01.2028 – for all companies) | Yes |
| United Kingdom | No | No (only in the healthcare sector) |
| Austria | No | Yes |
| France | No (planned for 01.09.2026 – for large and medium enterprises, and 01.09.2027 – for small and micro enterprises) | Yes |
| Czech Republic | No | No |
| Spain | Iplementation expected after the publication of the final technical regulations, currently anticipated from 2027 onwards depending on company size. | Yes |
| Italy | Yes | Yes |
| Netherlands | No | Yes |
| Romania | Yes | Yes |
| Sweden | No | Yes |
| Hungary | No (but there is a requirement for real-time invoice reporting – RTIR) | No |
| Lithuania | No | Yes |
| Slovakia | No | No |
| Belgium | Yes — mandatory for all domestic B2B transactions between Belgian-established businesses since 1 January 2026, | Yes |
| Bulgaria | No | No |
| Croatia | E-invoicing reforms are progressing as part of the Fiscalization 2.0 project, with implementation dates subject to legislative developments. | Yes |
| Cyprus | No | Yes |
| Denmark | No | Yes |
| Estonia | No | Yes |
| Finland | No | Yes |
| Greece | Yes — phased mandate: large businesses (gross revenue >€1M in 2023) from 2 February 2026; all other businesses from 1 October 2026. | Yes — fully mandatory for public contracts above €2,500 since 1 September 2025. |
| Ireland | No | No |
| Luxembourg | No | Yes |
| Latvia | No — mandatory B2B e-invoicing postponed to 1 January 2028. Voluntary B2B phase from March 2026. | Yes — mandatory B2G e-invoicing since 1 January 2025 (reporting to the State Revenue Service mandatory from 1 January 2026) |
| Malta | No | Yes |
| Portugal | No | Yes (for micro, small, and medium enterprises from 01.01.2025) |
| Slovenia | No | Yes |
| Switzerland | No | Yes |
E-invoicing implementation timeline
2025: The VAT in the Digital Age (ViDA) package was formally adopted by the European Union. Member States can now introduce mandatory domestic e-invoicing systems without requesting prior derogations from the European Commission, provided the systems comply with EU requirements.
From July 2030, new Digital Reporting Requirements (DRR) will apply to specific intra-EU B2B transactions covered by the ViDA package. Structured electronic invoices will become the default basis for reporting these transactions to tax authorities.
The significance of e-invoicing
The introduction of mandatory e-invoicing across the European Union aims not only to modernize the tax system but also to improve the efficiency and transparency of VAT collection. E-invoicing provides:
- Increased transparency: Enables real-time transaction tracking, reducing the risk of tax fraud.
- Simplified processes: Automation of invoice issuance and processing reduces administrative burdens for businesses.
- Cost savings: Reduces costs associated with traditional paper invoice issuance and eliminates human errors.
What ViDA changes for cross-border transactions
One of the most significant elements of the ViDA package is the introduction of Digital Reporting Requirements (DRR) for intra-EU B2B transactions. Under the new framework, transaction data will be reported electronically and much closer to real time than under the current recapitulative statement (EC Sales List) system.
The objective is to reduce VAT fraud, improve tax transparency, and create a more harmonized reporting environment across the European Union.
Summary
E-invoicing is a key element of the ViDA package, aimed at aligning the VAT system with the requirements of the contemporary digital economy. The implementation schedule for these changes is ambitious but necessary to meet the challenges of the modern economy. Entrepreneurs should closely monitor legislative developments and prepare in advance for the upcoming changes to seamlessly adapt to the new tax requirements. The introduction of ViDA is a significant step towards simplifying and improving the tax system, which is crucial for the further economic development of the European Union.
Iga Turniak
