E-Invoicing & E-Reporting developments in the news in week 28/2025

Podcasts on E-Invoicing & E-Reporting mandates on Spotify

Follow the latest updates on E-Invoicing and Real Time Reporting on www.vatupdate.com and the LinkedIn pages on E-Invoicing/Real Time Reporting and ViDA.

HIGHLIGHTS OF WEEK 28/2025

Blog Post: The Urgent Need for Standardization in E-Invoicing and E-Reporting Across EU Member States
- Fragmented Regulatory Landscape: The current e-invoicing and e-reporting systems across EU Member States are disjointed, resulting in a complex maze of national rules and formats. This fragmentation has increased compliance costs and hindered cross-border transactions, negatively impacting business efficiency and competitiveness, particularly for small and medium-sized enterprises (SMEs).
- Concerns Over the ViDA Initiative: The European Commission’s VAT in the Digital Age (ViDA) initiative aims to provide coherence in e-invoicing practices, but the lack of binding pan-European standards has led to continued divergence among Member States. This raises critical questions about compliance for cross-border transactions, as businesses may struggle to navigate different e-invoicing regimes.
- Call for Harmonization and Collaboration: To enhance operational efficiency, sustainability, and global competitiveness, the EU must establish a unified e-invoicing framework. This requires ongoing dialogue among stakeholders, learning from successful models in other countries, and embracing emerging technologies to future-proof the e-invoicing landscape. Immediate action is necessary to prevent further fragmentation and support the economic resilience of businesses, especially SMEs.
SWISSHOLDING Meeting on E-Invoicing and International Tax Considerations
- E-Invoicing Evolution: The presentation highlighted the transition to “Peppol” e-invoicing, which mandates daily electronic data submission from taxpayers to tax authorities, significantly enhancing tax authority oversight and data analysis capabilities.
- Phased Implementation: E-invoicing is being rolled out in phases across various countries, starting with selected taxpayers and gradually expanding to all businesses, with specific thresholds based on turnover and invoice amounts.
- Impact on Accounts Receivable (AR): Organizations must adapt to a new reconciliation process where tax authority data takes precedence over internal records, leading to potential discrepancies that require monthly reconciliations to avoid issues with VAT returns.
- Challenges in Accounts Payable (AP): The integration of e-invoicing complicates AP processes, necessitating a shift in operational focus from traditional commercial documents to e-invoices, which may lead to significant organizational changes and require robust data management strategies.
- Technical and Operational Considerations: Companies must prepare for frequent changes in technical schemas and ensure centralization of operations and data management to effectively navigate the complexities of e-invoicing, including the need for master data cleanup and real-time reconciliation with tax portals.
Denmark Considers Replacing National E-Invoicing System with International Peppol Standard After Review
- Review of OIOUBL and Nemhandel: Denmark’s Business Authority is assessing the future of its national e-invoicing format, OIOUBL, and the Nemhandel infrastructure, considering options for either a minor update or a complete phase-out in favor of the international Peppol standard due to its growing adoption.
- Key Considerations: The review will explore the implications of continuing with OIOUBL versus transitioning to Peppol, including the legal, political, and sustainability factors affecting the decision, as well as the technical and financial impacts of supporting multiple formats.
- Public Consultation Timeline: Stakeholder consultations are scheduled for September to October 2025, with the final review and decisions expected to be completed by November 2025, determining the direction for Denmark’s e-invoicing future.
Philippines to Implement Mandatory E-Invoicing for Select Taxpayers by March 2026
- Implementation Timeline: The Philippines’ Bureau of Internal Revenue (BIR) has mandated that selected taxpayers adopt electronic invoicing and sales reporting by March 2026, as outlined in Revenue Regulations 11-2025 and the CREATE MORE law. This marks a significant step towards modernizing tax reporting, although the implementation has faced delays since the introduction of e-invoicing under the 2018 TRAIN Law.
- Current Progress and Challenges: Although a pilot program for e-invoicing began in 2022, it has shown limited progress, and the BIR has yet to establish a fully operational automated system. The CREATE MORE law has reinforced the transition to e-invoicing but removed the previous five-year deadline for implementation, emphasizing that the rollout depends on the BIR’s technical readiness.
- Concerns and Future Outlook: There are ongoing concerns about the BIR’s capability to support a fully functional e-invoicing system and the potential compliance burden on businesses. Tax experts caution that without a reliable infrastructure, the early enforcement of e-invoicing may lead to significant challenges. However, once operational, the automated system is expected to enhance efficiency, transparency, and tax collection for both authorities and taxpayers.
Polish Parliament Advances Simplified E-Invoicing System, Reduces VAT Refund Time to 40 Days
- Draft Amendment to the VAT Act: On July 9, 2025, the Polish Sejm referred a draft amendment to the VAT Act to the Finance Committee, which aims to shorten the VAT refund deadline from 60 days to 40 days and introduce a simplified National e-Invoice System (KSeF) to enhance efficiency in tax reporting.
- Phased Implementation of KSeF: The KSeF will be rolled out in stages, starting on February 1, 2026, for companies with sales exceeding PLN 200 million in 2024, and on April 1, 2026, for other businesses. A transitional period will allow micro-entrepreneurs with monthly sales under PLN 10,000 to be exempt from issuing e-invoices until December 2026.
- Projected Benefits and Compliance Relief: The introduction of the KSeF is expected to standardize document flow, reduce business costs, and potentially increase budget revenues by PLN 10 billion over ten years by closing the VAT gap. Additionally, there will be no penalties for taxpayers during the transition period, and invoices can be issued offline in case of internet disruptions.