European Union: Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including implementation of digital reporting requirements and e-invoicing systems enter into force
Description
Council Directive (EU) 2025/516 amending Directive 2006/112/EC under VAT Rules in the Digital Age (ViDA) including implementation of digital reporting requirements and e-invoicing systems enter into force
On 1 July 2030, Article 5 of Council Directive (EU) 2025/516 will come into force. The scope of the Directive encompasses intra-EU business-to-business (B2B) transactions, thereby introducing the mandatory requirement for the issuance of structured electronic invoices. The invoices must comply with the European standard on electronic invoicing, as referenced in Directive 2014/55/EU, which corresponds to European standard EN 16931. The Directive establishes a maximum deadline of 10 days from the chargeable event for invoice issuance. It sets out the conditions for issuing summary invoices and provides rules for correcting previously issued invoices. The Directive also stipulates that taxable persons must transmit invoice-level data electronically, thereby replacing the obligation to submit recapitulative VAT statements. While the Directive harmonises electronic invoicing and reporting for cross-border B2B supplies, Member States may introduce similar requirements for domestic transactions at the national level.
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