Navigating VAT compliance in cross-border transactions within the EU can be a complex endeavour. Our quick guide on e-invoicing presents a solution to these challenges, offering an efficient path to compliance.
Challenges
VAT in the Digital Age
The ViDA initiative, set to start in 2024, marks a significant shift towards mandatory e-invoicing in the EU to modernise VAT compliance. By 2028, e-invoicing will be required for all intra-community transactions to enhance efficiency and combat VAT fraud. The initiative also includes digital reporting requirements and addresses VAT collection in the platform economy. Businesses, especially small enterprises, must prepare for these changes by digitising and adapting to the new VAT landscape.
Adopting European Standards
The implementation of the European standard EN 16931 for e-invoicing and the adaptation to digital reporting standards such as SAF-T require companies to integrate additional data not included in the standard and structured data formatting.
These challenges can increase the complexity of invoicing processes, as companies have to adapt to specific requirements and structures.
Country-Specific Implementations
EU countries such as Germany, Belgium, Sweden, Denmark and the Baltic states are at different stages of introducing e-invoicing and digital reporting.
These different national regulations pose challenges for companies as they have to adapt to the various requirements.