Taming e-invoicing’s information overload

Indirect tax compliance is getting more difficult as new e-invoicing and real-time reporting rules appear throughout the European Union (EU) and around the world.  

As I noted earlier this year, common e-invoicing challenges include: 

• Keeping pace with emerging e-invoicing requirements; 
• Understanding and adhering to unique e-invoicing specifications and formats; and  
• Navigating both of those difficulties while continuing to respond to changing VAT rules and rates in different countries.  

When addressing the first two challenges, a good place to start is on the European Commission site that features country-specific “fact sheets”, each of which details a member country’s e-invoicing activities and developing requirements. 

For example, Germany’s e-invoicing fact sheet notes that the country’s Growth Opportunities Act establishes e-invoicing as the default method for issuing invoices starting on 1 Jan. 2025 (although suppliers will continue to be able to issue hard-copy invoices – with buyer’s consent – for a certain period). Most companies will need to transition (entirely) to e-invoicing by 1 Jan. 2027; the smallest businesses – those with annual revenues below €800,000 (about £680,000) – will have an extra year to complete their transition.  

France set September 2026 as the deadline for all businesses to be able to accept e-invoices, although there will be an option to extend that deadline to December 2026 under certain conditions. By September 2026, mid-sized to large companies also must implement B2B e-invoicing and e-reporting capabilities; small businesses will have until September 2027 to fully implement e-invoicing and e-reporting (with an option to extend that deadline to December 2027). 

Romania was an early adopter of e-invoicing, as parts of the country’s requirements have already taken effect. As such, the country’s fact sheet provides a far more detailed account of their reporting requirements. This summer, Romania’s Ministry of Finance issued new legislation that expands the country's previous e-invoicing rules to include business-to-consumer (B2C) transactions and to “introduce the RO e-VAT system and some modifications in the structure of the fiscal receipts”. According to these measures, companies could begin voluntarily submitting B2C e-invoices on the country’s RO-e Factura system on 1 July, with mandatory submissions (with the exception of simplified invoices) starting on 1 Jan. 2025. Most companies were required to begin submitting B2B e-invoices on 1 July, although certain smaller and non-profit companies have until 1 July 2025 to do so. Romania is also on the leading edge of pre-filled VAT returns, which went into effect on 1 Aug. (with a six-month penalty-free period lasting until 1 Jan. 2025). 

There are many more details and requirements for taxpayers in Romania to understand, just as there are numerous country-specific e-invoicing dates and regulations being finalised and updated.  

It's also essential to keep an eye on the VAT in the Digital Age (ViDA) initiative from the EU Commission, which is due to be finalised and implemented. ViDA will significantly influence, align with and potentially merge with these national mandates. For more insights, check out my latest blog. In the meantime, we'll keep you informed about other notable developments and valuable compliance resources.