Mandatory electronic invoicing has become increasingly prevalent in Europe in recent years, with a number of countries embracing this method to modernise and simplify their invoicing processes. The transition to e-invoicing has been gradual but steady, with a range of European nations passing legislation and regulations to encourage the uptake of mandatory e-invoicing.
In this article, we will explore the challenges and transformations encountered by countries as they endeavour to adopt the most effective models and systems.
Belgium
The Ministry of Finance in Belgium had initially intended to initiate compulsory B2B e-invoicing from July 2024. However, due to a dearth of agreement on a significant tax reform, these plans have been deferred, probably until after the summer elections of 2024. In reality, it is improbable to obtain approval before 2026.
Moreover, Belgium is closely monitoring the advancement of the European Union's e-invoicing plans under 'ViDA'. Belgium intends to implement a PEPPOL-based e-invoicing system using a five-cornered model.
Romania
Romania has proposed a bill for the enactment of B2B e-invoicing, which will apply to both resident and non-resident companies. This implementation will occur in two stages.
- From 1st January to 31st June 2024, a near real-time invoice reporting system will be established, necessitating digital invoice reporting within 5 business days of issuance.
- From July 2024, complete e-invoice submissions that were previously authorized through the eFactură platform will be available.
During the e-invoicing process, pre-clearance invoices will be sent in the CIUS_RO format to the appropriate government portal, after performing basic informational and format checks. To comply with the ViDA project guidelines, this requirement may be removed from January 2026 onwards.
Germany
Germany's most recent fiscal reform legislation includes the roll-out of compulsory e-invoicing for domestic transactions. The draft bill is presently undergoing a review process, with an anticipated approval date of December 15.
Moreover, the obligation for small businesses has been postponed for one year, with a new deadline of January 2027, while larger firms are expected to comply from January 2026.
Therefore, the timeline is as follows:
- Voluntary e-invoicing for all from January 2025.
- Starting from January 2026, companies with an annual turnover exceeding €800.000 are required to issue B2B e-invoices.
- From January 2027, B2B e-invoicing will be mandatory for all companies including small ones.
- By January 2028, all e-invoices must comply with the EU's structured standard, EN 16931.
Greece
Greece is reviewing the implementation of e-invoicing in 2024 as an essential component of its tax evasion combat plan.
This endeavour falls under a wider scope of aims, such as melding cash registers with point-of-sale (POS), schemes to enable the government to report transactions in real-time, expanding the myDATA system by 2024 and extending the electronic payment system (EFT/POS) requirement to encompass extra sectors.
Greece's Ministry of Finance and tax authority are in discussions with the European Commission to obtain the necessary waivers. The waivers will permit Greece to deviate from the EU VAT Directive and introduce e-invoicing obligations for taxpayers.
Successful negotiation could result in implementation as early as 2025, with the possibility of automatic VAT return submissions beginning the same year.
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