The reason behind this development is clear. Digital invoicing lowers administrative costs, reduces paper consumption, which is good for the environment, and prevents errors and fraud in VAT returns. This digital control of transactions is also known as Continuous Transaction Control and is part of a wider European approach under the name ViDA, or VAT in the Digital Age.
Target
ViDA is a European directive that aims to harmonise VAT systems within the EU. By 2030 at the latest, all invoices exchanged between EU countries must be fully electronic and reported directly to tax authorities. Member states are also free to introduce this requirement earlier and make it applicable to domestic transactions as well.
Peppol network
For the secure and standardised sending and receiving of electronic invoices, there is the Peppol network. This platform ensures that digital invoices can be exchanged directly between the administrations of different companies. In the Netherlands, the Dutch Peppol Authority (NPa) is responsible for managing this network. Many companies can already connect directly to Peppol via their existing ERP or accounting software. Companies without such a package can use a Peppol service provider or an online invoice portal. After a one-time connection, it is possible to send and receive electronic invoices worldwide with any organisation that is also connected.
All businesses should switch
The introduction of e-invoicing will be gradual. Germany already started with an obligation to receive e-invoices in January 2025, followed by an obligation to send in 2027 for larger companies and in 2028 for all companies. Belgium will mandate e-invoicing in 2026 and France will also start phasing in that year. For the Netherlands, the obligation for sending and receiving is expected in 2027 or 2028. Eventually, all businesses in the EU should have fully switched to electronic invoicing.
Far away?
Although 2027 or 2028 may seem far away, it is wise to start preparing now. Digital invoicing affects work processes and systems and requires some adaptation. Therefore, contact the supplier of your financial or ERP software in good time. It is also advisable to engage a specialist who can provide the link to the Peppol network. Once the system is up and running, it will not only ensure a more efficient invoicing process, but also contribute to faster and more correct VAT processing. In short: it pays to get in on time. What may feel like a distant future today will soon be the norm.
