The digitization of sales tax in Europe continues to gain momentum. In mid-February 2025, the EU Parliament adopted the proposed amendments to the ViDA initiative (VAT in the Digital Age). This brings mandatory electronic invoicing for intra-Community B2B transactions within reach by 2030. But what exactly has been decided and what does this mean for companies in Germany?

What is behind ViDA?

ViDA is the reform initiated by the EU Commission to modernize VAT collection. It has three main objectives:

• Combating tax fraud through a digital real-time reporting system
• Harmonizing e-invoicing obligations within the EU
• Facilitating cross-border trade through uniform processes and digital reporting obligations

The key point: Companies within the EU will in future be obliged to issue eInvoices in accordance with the EU standard EN 16931 and report VAT transactions in near real time.

What changes has the EU Parliament decided on?

After some back and forth, the EU Parliament has now adopted the changes proposed by the Commission. The most important points are:

• Mandatory e-invoicing for intra-Community B2B transactions from 2030: National exceptions are to be restricted, and the European standard EN 16931 will become the general standard – no longer just for B2G invoice exchange, but also for B2B.
• EU-wide digital reporting system: In future, transaction data will be transmitted to the tax authorities in real time.
• Relief for SMEs: Small businesses will benefit from simplified reporting requirements, but are not completely exempt from the upcoming EU-wide obligation.
• New rules for online platforms: Marketplaces and digital platforms will have to collect and report accurate VAT data in future.

What does this mean for companies in Germany?

Germany is already preparing for the digitization of sales tax. With the eInvoicing requirement for B2B transactions, which will be introduced gradually starting January 1, 2025, the Federal Ministry of Finance has laid the foundation for the upcoming EU-wide system.

Important: The gradual introduction of mandatory e-invoicing will make it easier for companies to prepare for the upcoming European requirements. Those who invest in a well-designed eInvoicing solution today will not have to worry about the deadline in 2030. This can be achieved particularly well with one of the experienced TRAFFIQX® providers from the largest German network for electronic invoice exchange!

What happens next?

Following approval by the EU Parliament, the reform package will now be put to a vote by the member states. The specific technical details of the digital reporting system will be defined in the coming months. The next milestones are:

• 2025: Member states can introduce eInvoicing on a mandatory basis without prior approval from the EU Commission.
• 2028: Uniform VAT registration in the EU.
• 2030: Digital reporting obligation for intra-Community transactions.
• 2035: Complete harmonization of the digital tax environment in Europe.