E-Invoicing Mandates in the EU – HubBroker’s Compliance Role
What is ViDA? EU’s Digital VAT Transformation Initiative
Through its “VAT in the Digital Age” (ViDA) initiative, the European Commission is promoting the standardization and digitization of value-added tax (VAT) reporting throughout the EU. A major component of this initiative is the requirement for mandatory e-invoicing for cross-border B2B transactions within the EU. This requirement affects businesses of all sizes, whether they are located inside or outside the EU.
The 3 Pillars of ViDA for EU VAT Compliance
The ViDA proposal introduced three pivotal pillars aimed at modernizing VAT compliance:
E-Invoicing and digital reporting requirements:
- It focuses on the real-time digital reporting of VAT transactions.
- Ensures greater accuracy and reduces the risk of fraud.
- Mandates cross-border e-Invoicing to support the digital reporting requirements (DRR).
- Removes restrictions on e-Invoicing.
Single VAT Registration in the EU:
- Simplifies VAT compliance by allowing businesses to register for VAT only once across the entire EU.
- Streamlines operations and reduces administrative burdens.
Enhanced rules around digital platforms:
- Ensures VAT is correctly applied to transactions facilitated by online platforms.
- Makes platforms responsible for VAT collection and remittance.
Business Impacts of Mandatory E-Invoicing in the EU:
E-invoices will become the established norm, replacing the existing EC Sales List with near real-time reporting. Tax authorities will be mandated to receive electronic invoice data immediately through country-specific reporting portals.
Companies will need to guarantee that their invoicing systems are compatible with national platforms for system interoperability. There will be more stringent compliance requirements, and businesses should prepare for improved validation processes to ensure adherence to VAT regulations.
What implications does this have for companies?
Businesses must begin adjusting their systems and processes promptly to mitigate tax risks and avoid possible penalties.
Real-time reporting will necessitate direct integration with national tax platforms and automated validation of invoices.
With varying national specifications, a flexible and scalable solution will be crucial.
The result: national e-Invoicing mandates ahead
For multinationals operating in the European Union, this represents a significant shift. Currently, around ten member states are already in the process of implementing their own e-Invoicing mandates, with the remaining 17 to follow at their own pace. Businesses can therefore expect to deal with on average 3-4 new e-Invoicing mandates per year until mid-2030.
Our experience dealing with these mandates is that it can take enterprises up to two years to prepare and implement e-Invoicing to meet a single mandate, so the planning of such a huge number of mandates will represent an incredible burden on already strapped resources across tax, finance, and IT.
The main advantages of e-invoicing at a glance
Automation and efficiency:
Manual invoice handling is time-consuming and prone to human error. By automating the entire invoicing workflow, HubBroker enables faster processing, reduces operational bottlenecks, and frees up valuable internal resources.
Cost savings:
Transitioning to digital invoicing eliminates the need for printing, paper storage, and postage—leading to measurable cost savings in both the short and long term. These efficiencies directly contribute to a leaner, more agile finance operation.
Sustainability:
E-invoicing plays a critical role in achieving sustainability goals. By minimizing paper usage and reducing CO₂ emissions associated with traditional invoicing processes, businesses can take meaningful steps toward environmental responsibility.
Enhanced compliance:
Standardized e-invoicing processes help businesses meet evolving VAT regulations, particularly under the EU’s ViDA framework. Real-time validation and submission reduce the likelihood of errors and help ensure full tax compliance across jurisdictions.
Accelerated payments:
With digital workflows, invoices move faster through approval and processing stages. This shortens the order-to-cash cycle, improves cash flow, and strengthens supplier and customer relationships through timely payments.
EDI Integration:
HubBroker’s EDI solutions automate the exchange of invoices and related documents between systems, enhancing accuracy and speed while minimizing manual intervention.
API Management:
Our robust API solutions allow seamless integration with national tax portals and third-party systems. This ensures real-time invoice submission, instant data exchange, and continuous compliance with local reporting requirements.
Cloud Integration:
HubBroker’s cloud-based platform offers secure, scalable infrastructure that adapts to business growth. It supports multiple regions and evolving mandates, providing a future-ready foundation for cross-border e-invoicing
How HubBroker can Help?
As e-invoicing requirements continue to evolve throughout European nations, companies must implement strong solutions to ensure adherence and optimize their invoicing procedures. HubBroker provides a range of effective products to assist businesses in successfully managing this transition. EDI Integration automates the transmission of invoices and other business documents, guaranteeing quicker and more precise invoicing while conforming to specific national regulations. With API Management, companies can easily link their systems with national platforms for real-time data exchange, keeping them ahead of compliance timelines. HubBroker’s Cloud Integration offers scalable and secure cloud-based options that assist businesses as they grow and adjust to shifting e-invoicing rules across different countries. Collectively, these solutions enable firms to not only fulfill e-invoicing obligations but also enhance operational efficiency, minimize errors, and facilitate smoother cross-border invoicing within the EU.
Stay Ahead of EU E-Invoicing Compliance
Ready to stay ahead of the EU’s evolving e-invoicing landscape? HubBroker makes compliance simple with tailored solutions that integrate seamlessly with your existing systems. Whether you’re navigating your first mandate or scaling across multiple EU countries, our team is here to guide you every step of the way.
Let’s discuss how we can simplify your digital invoicing journey—book a demo or contact us today.
Frequently Asked Questions (FAQ):
1. What is e-invoicing compliance in the EU?
E-invoicing compliance refers to adhering to country-specific requirements for the electronic exchange and reporting of invoices, especially under the EU’s VAT in the Digital Age (ViDA) initiative.
2. Do I need to use PEPPOL for cross-border invoices?
Yes, PEPPOL is widely used for secure and standardized e-invoicing in the EU. HubBroker’s solutions ensure seamless PEPPOL integration.
3. How can HubBroker help my business become compliant?
HubBroker provides EDI and API solutions that automate invoice transmission, ensure real-time compliance with national portals, and scale with your business needs.
