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EU Implements New VAT Rules: Mandatory E-Invoicing and Digital Reporting for Cross-Border Trade

    The Dutch government is preparing to implement new VAT rules requiring businesses to use electronic invoicing and digital reporting for cross-border trade within the EU. These measures aim to reduce administrative burdens, combat fraud, and strengthen the digital economy. The EU’s Economic and Financial Affairs Council officially accepted the VIDA package on March 11, 2025, introducing significant VAT changes to update cross-border trade reporting and reduce fragmentation among member states. From July 1, 2030, businesses must digitally report each cross-border transaction within the EU using electronic invoices that meet EU standards, with a shortened issuance period of ten days. This shift from monthly or quarterly reporting to per-invoice reporting is expected to enhance business efficiency and fraud prevention. The Dutch government is considering whether to extend these requirements to domestic B2B trade and is planning the implementation in four phases: policy research, legislation, technical development, and introduction. The tax authority will adjust its systems to accommodate the new reporting requirements.

Source: taxence.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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