Possibility of imposing the obligation of electronic invoicing in EU countries from April 14
The publication of the Vida package (VAT in the digital age) marks an important evolution in the regulatory framework of the European Union regarding electronic invoicing. With the entry into force of differentiated measures starting from April 14, 2025, Member States will have the option to introduce domestic electronic invoicing obligations exclusively for taxable entities established in their territory, excluding taxpayers identified solely for VAT purposes. The Official Journal of the European Union published on March 25, 2025, three measures, including EU Directive No. 516, Council Regulations 517 and 518, which respectively amend the VAT directive and previous regulations concerning administrative cooperation and implementing provisions.
News
Starting from April 14, 2025, Member States will be able to apply the legislative, regulatory, and administrative provisions provided by Directive 516 on electronic invoicing. These new measures will allow States to implement the obligation to use electronic invoicing for national transactions without requiring prior approval from the European Commission. However, intra-community transfers of goods; national transfers of goods made in the context of a triangular transaction; and services rendered to a Member State where the supplier is not established and for which the recipient is liable for payment of the tax will not be included.
The new paragraph 2 of Article 218 offers Member States the possibility to require taxable entity established in their territory to issue electronic invoices for transactions conducted. It is important to note that, as stated in Working Paper No. 1102 of the VAT Committee of the European Commission dated March 11, 2025, the obligation to issue and receive invoices will only apply to established entities, not those identified without a permanent establishment. Member States can still require identified taxable companies to communicate their transaction data, allowing for this to be done via electronic invoicing. There is no prohibition on voluntary adherence to electronic invoicing systems for identified entities, especially in light of the further change expected from July 1, 2030, when the obligation for electronic invoicing for all intra-Union operations will come into force, and a new digital reporting document (DRR) will be introduced in place of Intrastat models. Currently, Italy has already adopted provisions in line with these regulations, limiting the obligation to established and resident companies, while it is necessary to monitor how other Member States will handle the obligation.
Conclusion
In summary, the Vida package represents a significant step towards the harmonization of electronic invoicing within the European Union, offering Member States tools to improve tax compliance and transparency. The distinction between established and identified taxable companies will have an important impact on the practical implementation of these rules. The possibility of voluntary adherence for identified companies could encourage a transition towards digitalized systems before the introduction of obligations from July 1, 2030. It will be essential for all taxpayers and tax authorities to adapt to these new rules, closely monitoring national implementations. It is therefore advisable to check with any foreign interlocutors regarding the introduction of innovations in this regard, in order to adjust the invoicing process. In particular, to understand what additional information will be necessary.
