The European Commission will Implement Mandatory Real-time E-reporting

The European Commission plans to digitize VAT settlements in the European Union and better protect Member States’ budgets against fraud through the “VAT in the Digital Age” directive.
The directive aims to modernize VAT reporting obligations by introducing Digital Reporting Requirements (DRR) and imposing the use of e-invoicing in cross-border transactions for B2B transactions from 2028.
Taxable persons identified for VAT purposes must submit information on each intra-Community supply of goods, each intra-Community acquisition of goods, and each supply of a taxable service in a Member State other than where the supplier is established.
The European Commission proposes creating a central electronic VAT information system (central “VIES”) to combat VAT fraud by aggregating information on each taxable person’s cross-border B2B transactions.
The new information should be entered into the central VIES within one day after collection by the domestic tax administration.
The information will be stored in the central VIES for five years and available to authorized officials to control the correct application of VAT rules and combat VAT fraud.
Recapitulative statements (EC Sales List or ESL) will be withdrawn, and mandatory e-invoicing and DRR will be introduced.
European Union businesses have expressed concerns about the short time allowed for sending e-reports, requesting an extension to two weeks.