With the approval of the ViDA (VAT in the Digital Age) package, the EU has set in motion a structural change in how companies manage fiscal transactions and e-Invoicing processes. The goal is to introduce mandatory structured e-Invoicing for cross-border B2B transactions by July 1, 2030, alongside a digital reporting system for VAT-relevant data. In this manner, the tax authorities will be able to more rapidly monitor transactions between Member States subject to Value Added Tax (VAT), reducing the risk of fraud and improving supervision capabilities.
In the meantime, many Member States are already implementing national e-Invoicing mandates, adopting different regulations and technical models. This evolution creates a dishomogeneous European landscape, in which platforms, formats, and infrastructure can change significantly from one country to the next.
In this context, understanding how e-Invoicing will evolve in Italy is now essential for companies operating at an international level. The Italian system is amongst the most mature in Europe, but the introduction of ViDA will bring with it some significant changes in the next few years.
The European ViDA Package: Reforming “VAT in the Digital Age”
The ViDA (VAT in the Digital Age) package represents one of the most ambitious tax reforms introduced by the EU in recent years. The goal is to modernize the Value Added Tax (VAT) system, bringing it in line with the increasing levels of digitalization in the economy and the dynamics of cross-border transactions. The reforms involve the mandatory introduction of structured e-Invoicing for intra-EU B2B transactions, and the creation of a near-real time digital reporting system to the European tax authorities.
One of the core elements of the reforms is the integration of invoicing data into a shared European infrastructure, the VIES system, which will allow tax authorities to monitor transactions between Member States which are subject to VAT. This digital transaction monitoring model, already adopted in different manners by various European countries, is the decisive step towards a more interoperable and coordinated European ecosystem.
In this framework, interoperable tools such as the Peppol network and advanced data governance strategies are becoming ever-more relevant for companies with operations in multiple European markets, as they allow the increasing regulatory complexity to be managed by maintaining control over invoicing processes and data.
Italy as an Advanced e-Invoicing Model
Italy was one of the first major European nations to adopt mandatory B2B e-Invoicing. The system is based on a centralized model managed via the Exchange System (ES) – Sistema di Interscambio (SdI) in Italian – through which all national B2B and B2G invoices transit.
It is an approach which has allowed tax authorities to obtain near-real time visibility of transaction flows subject to VAT, providing a significant contribution to reducing the “VAT gap” and accelerating the digitalization of corporate administrative processes.
The Italian experience demonstrates that e-Invoicing encourages the adoption of more advanced digital practices over time, such as compliant electronic archiving and widespread use of digital signatures, and contributes to the construction of a wider digital trust ecosystem.
For this reason, Italian e-Invoicing is often considered a benchmark in the European debate on the digital transformation of fiscal systems.
An Increasingly Fragmented European Landscape
Despite the existence of a common European standard – the EN 16931 semantic model – Member States are implementing e-Invoicing with very different technical approaches. Some countries, such as Poland, have chosen centralized platforms managed directly by the tax authorities. Others, such as Belgium, have adopted decentralized infrastructure based on international standards.
This diversity of models is causing increasing levels of complexity for multinationals. Organizations with operations in multiple European countries have to manage different formats, specific national platforms, and different reporting requirements.
It is in this scenario that interoperable tools such as the Peppol network are emerging as potential reference infrastructure for the exchange of e-Invoices between economic operators. The Peppol network, already used in various national systems, could indeed become one of the main channels for future European and cross-border e-Invoicing in the context of the ViDA reforms.
What It Means for Italian Companies
For Italian companies with foreign operations, the introduction of national e-Invoicing mandates does not automatically lead to new requirements. In general, local regulations apply to companies with premises or a stable organization in the country introducing the mandate.
Nevertheless, waiting for the introduction of new requirements can lead to operational risks and higher adaptation/compliance costs in the medium term. With the European e-Invoicing landscape becoming ever-more diversified, early technological adaptation can turn out to be an intelligent and far-sighted choice.
More specifically, many organizations are evaluating the adoption of interoperable infrastructure such as Peppol, which allows the exchange of e-Invoices between different countries using a standardized network.
At the same time, strengthening data governance policies becomes ever-more important, in order to prevent invoicing data being trapped in national systems which are difficult to integrate or scale. Robust data governance indeed allows companies to maintain control over their fiscal data, and to adapt their invoicing processes to the different European regulations without having to rely on specific infrastructure.
What Will Change from 2030 with ViDA
The most significant step introduced by the ViDA reforms involves the introduction of a European digital reporting system for transactions. National tax authorities will send the data for transactions subject to VAT to a centralized system known as VIES (VAT Information Exchange System).
This mechanism will allow European tax authorities to monitor cross-border transactions in near real time, strengthening fiscal surveillance and reducing the risk of fraud.
As regards e-Invoicing in Italy, the introduction of the new European system will not make the existing infrastructure immediately redundant. The ES will continue to operate, but it will require gradual alignment over the course of a transition period which will run until July 1, 2035. The Italian model will remain operational, but will have to integrate with the new European e-Invoicing ecosystem provided for under ViDA.
The Future of the Intrastat Model
Intrastat is the periodic reporting system through which companies provide the tax authorities with the data from commercial transactions with other EU countries. The Intrastat system currently requires companies to make periodic declarations of their intra-EU operations.
In the short term, Intrastat reporting requirements will remain in force. Nevertheless, the introduction of digital reporting to VIES should gradually make this system redundant. When the new model is fully operational, the data required for monitoring intra-EU transactions will be transmitted automatically through the e-Invoicing flows, reducing the need for further compliance measures.
Prospectively, the replacement of Intrastat with digital reporting systems represents one of the most important steps in the ViDA reforms, as it could greatly simplify administrative requirements for businesses.
Beyond Compliance: the Strategic Value of Invoicing Data
The transformation of e-Invoicing in Europe involves more than just compliance with tax regulations. The data contained in structured invoices can become a strategic resource for improving corporate processes, strengthening data governance, and developing new digital services.
Companies adopting an advanced vision of e-Invoicing can use invoice data to generate personalized communications, create invoicing experiences which are more transparent for customers, and integrate the administrative flows with customer engagement systems.
From this standpoint, solutions such as Doxee Platform® allow the orchestration of digital communication processes, starting out from the structured data of e-Invoices. The information generated by the e-Invoicing systems can be transformed into interactive, omnichannel touchpoints, improving the comprehensibility of invoices and reducing the operational load for support services.
Preparing for the European Evolution Today
The road to the new European e-Invoicing ecosystem is already open. The introduction of the ViDA reforms, the progressive roll-out of the Peppol network, the evolution of the Intrastat system, and strengthening of data governance strategies are redefining how companies manage fiscal data and commercial transactions.
While 2030 may seem far away, the time has already come for companies with international operations to engage in strategic reflection. Those in the European digital market who are able to prepare in a timely manner will be able to transform e-Invoicing – both in Italy and abroad – from a simple regulatory obligation into a fully fledged driver of innovation, operational efficiency, and value creation.
FAQ
1. What are the ViDA reforms and why are they important for European companies?
ViDA (VAT in the Digital Age) is the package of reforms with which the EU is aiming to modernize the VAT system. It introduces mandatory e-Invoicing for intra-EU B2B transactions, and a digital reporting system for fiscal data.
2. How will e-Invoicing change in Italy with ViDA?
e-Invoicing in Italy will continue to be based on the Exchange System (ES). Nevertheless, the ES will be progressively integrated with the European digital reporting infrastructure provided for by the reforms.
3. What role will VIES play in the new European e-Invoicing landscape?
VIES will be the European system which collects the data for transactions subject to VAT. The national tax authorities will send this information in near real time, improving surveillance of cross-border operations.
4. Will the Intrastat system be eliminated?
In the short term, Intrastat will remain in force for reporting of intra-EU transactions. It may be progressively replaced with the evolution of European e-Invoicing and digital reporting to VIES.
