E-Invoicing & E-Reporting developments in the news in week 48/2025

Podcast 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 WEEKS 48/2025

Global Shift to Digitalization: Countries are increasingly implementing electronic solutions such as e-invoicing, e-reporting, e-transport, and SAF-T mandates to enhance financial and logistical efficiency, reflecting a broader trend towards digitalization in commerce and tax compliance.
Country-Specific Profiles: The analysis includes detailed profiles of various countries, outlining their regulatory frameworks and measures related to e-invoicing and e-reporting. The profiles are regularly updated and include insights on the implications for businesses and compliance.
Engagement and Resources: Accompanying the country profiles is an engaging podcast available on Spotify, inviting listeners to delve deeper into the topics discussed. The initiative encourages feedback and discussions on the impact of these digital mandates on global trade and tax compliance.

Briefing document: E-Invoicing & E-Reporting in the United Kingdom: Scope and Implementation Overview

Electronic VAT Invoicing Mandate: The UK will require all VAT invoices to be issued electronically starting April 1, 2029, aligning with the EU’s ViDA reforms set for 2030, to facilitate a fully digital invoicing system for B2B and B2G transactions.
Implementation and Technical Framework: A decentralized “four-corner” model will be adopted, where structured invoices are exchanged between accredited providers and buyers, with an emphasis on machine-readable formats and compliance with Peppol standards for interoperability.
Preparation Timeline and Business Impact: Businesses should begin transitioning to the new invoicing model by mapping current data to Peppol standards, with a phased approach starting in 2026, aiming for significant productivity gains and improved risk analytics for the government.

The European Commission is seeking stakeholder input to revise EU eInvoicing rules in public procurement.
The consultation aims to improve harmonisation, interoperability, and reduce administrative burdens for cross-border business.
Barriers to uptake and interoperability have limited the effectiveness of the 2014 eInvoicing Directive.
eInvoicing will become mandatory for B2B cross-border transactions by 2030 under the VAT in the Digital Age (ViDA) package.
The public consultation runs for 12 weeks, with a response deadline of 17 December 2025.

Public Consultation Overview: Hungary has initiated a public consultation on a new mandatory B2B e-invoicing and digital reporting model, aligned with the EU’s ViDA, focusing on domestic and intra-EU transactions, with feedback accepted until January 20, 2026.
Proposed Framework and Technical Specifications: The new model will require EN 16931-compliant XML e-invoices to be exchanged via Peppol or similar secure channels, with the authoritative format being XML, while visual formats like PDFs may be supplementary. A decentralized reporting approach will involve sellers and, in specific cases, buyers reporting e-invoices to NAV.
Key Parameters for Implementation: Draft guidelines propose timelines for invoice issuance (8 days for domestic, 10 days for intra-EU), validation checks, and the potential for a free NAV app for providers. Stakeholders are encouraged to provide input to influence the final framework, including duties, deadlines, and adoption of standards.

Draft Exemptions from KSeF: Poland’s Ministry of Finance has proposed a draft act that would exempt specific transaction types from mandatory structured e-invoicing via KSeF, including toll services, passenger transport, air traffic control services, and certain transactions involving legal tender, effective from February 1, 2026.
Voluntary Options and Self-Billing Rules: The draft allows taxpayers to opt-in to issue structured e-invoices for intra-EU supplies if the non-resident buyer has a valid EU VAT ID, and self-billing transactions are exempt from structured e-invoicing requirements if either party lacks a Polish NIP, facilitating cross-border transactions.
Impact on KSeF Coverage: While the majority of standard B2B sales and services will still require structured e-invoicing, the proposed exemptions will ease compliance for high-volume ticketing and specific cash-equivalent transactions, refining the scope of KSeF.

Mandatory e-Invoicing Implementation: Slovakia will implement a mandatory VAT e-invoicing regime starting January 1, 2027, requiring all VAT-registered taxable persons to issue and receive structured electronic invoices for domestic B2B and B2G transactions, reporting data via the IS eFaktúra system.
Key Features of the New System: Invoices will be exchanged in a structured XML format aligned with EN 16931, routed through certified service providers known as “Digital Postmen.” The system emphasizes that e-invoices must be machine-readable XML files, excluding PDFs or scanned images, and a transitional period from January 1, 2026, allows voluntary usage before the mandatory deadline.
Timeline and EU Alignment: The e-invoicing initiative is part of the EU’s VAT in the Digital Age (ViDA) reforms, with a transitional phase for testing in 2026 and plans for further expansion to intra-EU B2B invoicing by July 2030, replacing existing VAT reporting methods. Businesses are encouraged to prepare and stabilize their processes ahead of the January 2027 launch.

Draft Approval for VAT Law Update: The Council of Ministers has approved the initial draft to amend VAT Law 37/1992, aligning with the EU’s VAT in the Digital Age (ViDA) directive (EU 2025/516), which aims to modernize the VAT system for the digital economy.
Key Features of the ViDA Directive: The updates focus on enhancing the fight against intra-Community fraud through standardized electronic invoicing, simplifying VAT registration to a single VAT ID for businesses across the EU, and expanding the responsibilities of digital platforms to include services like short-term accommodation and passenger transport.
Implementation Timeline: The changes will be phased in starting January 1, 2027, with significant reforms set for July 1, 2028, and July 1, 2030, introducing technical updates such as expanded coverage for non-EU consumer services and new requirements for non-EU businesses regarding VAT refunds.

Germany – BMF Issues Final Guidance on E-Invoice Error Categories and Validation Requirements

The BMF published the final version of its updated letter on e-invoicing on 15.10.2025.
The letter introduces three error categories for e-invoices: format errors, business rule errors, and content errors.
The BMF clarifies the importance of validation processes and the use of validation software for e-invoices.
The update emphasizes both formal and technical requirements for e-invoices according to CEN standard EN 16931.

See also

Belgium

Bosnia and Herzegovina