E-Invoicing & E-Reporting developments in the news in week 49/2025

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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 49/2025

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.

Mandatory E-Invoicing Start Date: Belgium will implement mandatory structured electronic invoicing for B2B transactions starting January 1, 2026, using the Peppol BIS standard for automated processing. This requirement applies to VAT-liable businesses, emphasizing the transition to digital invoicing.
Q1 2026 Tolerance Period: The Belgian tax authorities announced a tolerance period during the first quarter of 2026, during which penalties for late issuance or receipt of structured e-invoices will not be enforced. Businesses must demonstrate that they made timely and reasonable preparations to comply with the new obligation.
Clarification on Tolerance: The tolerance period is not a postponement of the e-invoicing obligation, which remains effective from January 1, 2026. It is designed to assist businesses facing practical challenges despite having prepared adequately, with evaluations conducted on a case-by-case basis.

Confirmation and Scope Refinement: The draft bill submitted on December 3, 2025, confirms the mandatory start date for B2B electronic invoicing in Belgium as January 1, 2026, removing previous conditionalities tied to EU derogations. It refines the scope of the obligation to apply only to taxable persons established in Belgium, excluding non-established entities that merely have a Belgian VAT number.
Fallback Mechanism Implementation: To address potential technical issues when invoicing, the bill introduces a “fallback” mechanism allowing suppliers to issue standard invoices (e.g., PDF or paper) if clients are unable to receive e-invoices due to technical failures. However, clients remain liable for ensuring their ability to receive e-invoices and may face penalties for non-compliance.
Technical Standardization and Additional VAT Amendments: The bill aligns Belgium’s e-invoicing standards with the European ViDA directive and the Peppol network to ensure interoperability. It also includes amendments to align the VAT revision period for real estate renovations with new buildings and simplifies administrative processes for tax declarations.

Synchronized Update Announcement: On December 4, 2025, Germany’s Forum elektronische Rechnung Deutschland (FeRD) and France’s FNFE-MPE announced that their national e-invoicing standards will be updated on January 15, 2026, marking a significant step in the EU’s VAT in the Digital Age (ViDA) initiative.
Mandatory E-Invoicing Timelines: Germany will implement mandatory B2B e-invoicing starting January 2026, gradually phasing in through 2028, while France will begin mandatory B2B e-invoicing in September 2026, with a complete rollout by 2027. Both countries aim to harmonize their e-invoicing formats for better interoperability and compliance with EU digital reporting.
Key Features of the Update: The release will feature updated standards (ZUGFeRD 2.4 for Germany and Factur-X 1.08 for France) aligned with European norm EN 16931. Enhancements include updated code lists, support for hierarchical line structures, rounding tolerances, and the integration of France’s AFNOR XP Z12-012 framework. The hybrid format will continue to ensure both human readability (PDF) and machine processability (XML), facilitating compliance with EU invoicing directives.

Postponement of Verifactu Start Dates: The implementation of Spain’s Verifactu mandate has been delayed, with corporate taxpayers required to comply by January 1, 2027, and SMEs/self-employed individuals by July 1, 2027, as approved by a royal decree-law on December 2, 2025.
Compliance Requirements: Verifactu mandates that businesses use compliant software to generate standardized invoice records, ensuring authenticity, integrity, and traceability. Non-compliance can result in significant fines, making early preparation essential.
Market Readiness and Preparation: As of late 2025, only about 8% of SMEs had implemented Verifactu-ready tools, necessitating the additional time for market stabilization and system readiness. Priorities for 2026 include confirming software conformity, enhancing data discipline, and ensuring effective traceability and retrieval practices.

Cabinet Decision No. 106 of 2025 sets administrative penalties for breaches of Electronic Invoicing System regulations.
The decision applies to violations under Federal Decree-Law No. 28 of 2022, excluding voluntary users of the system.
Penalties include AED 5,000 per month for failing to implement the system, AED 100 per invoice/credit note (up to AED 5,000/month) for late issuance/transmission, and AED 1,000 per day for delays in notifying authorities or service providers of system failures or data changes.

Phased Implementation of ViDA: EU Member States are developing national plans to implement the VAT in the Digital Age (ViDA) initiative, with a focus on mandatory e-invoicing and digital reporting, aiming for full compliance by 2030-2035. Countries like the Netherlands and Ireland have outlined multi-phase strategies to ensure businesses are prepared and can adapt smoothly.
Support and Coordination by the European Commission: The European Commission is facilitating the implementation of ViDA through technical guidance, workshops, and the establishment of common standards for e-invoicing, helping Member States align their systems with EU regulations and improve compliance in the digital economy.
Engagement and Adaptation Efforts: Countries such as Sweden, Slovakia, and Portugal are actively engaging businesses and conducting inquiries to prepare for ViDA’s requirements, focusing on real-time reporting, digital VAT obligations for platforms, and the adaptation of existing systems to enhance tax compliance and reduce fraud.

See also

Belgium