1. Mandatory e-invoicing
According to new regulations, from 2028, businesses in the EU will be required to use e-invoices to replace traditional paper invoices. E-invoicing aims to simplify tax processes, reduce the risk of errors and ensure better data quality. Electronic invoices will have to meet certain technical requirements, making it easier for tax administrations to monitor transactions in real time.
2. Tax process automation
The VAT in the Digital Age package also envisages the introduction of more advanced automation in the exchange of tax data. Through the use of modern technologies such as EDI (Electronic Data Interchange), businesses will be able to automatically send transaction data to the tax administration. Such a system will allow faster verification of transactions and enable easier management of tax obligations internationally.
3. Increased international cooperation
The reform also aims to promote international cooperation between EU member states. The revised rules will facilitate the exchange of tax data between countries, which will enable better monitoring of cross-border transactions and reduce the risk of tax fraud. With the new system, tax administrations will be able to exchange information on transactions on an ongoing basis, which will improve the transparency of the tax system in the EU.
4. Reduction of costs and administrative burden
By digitalising and automating processes, businesses will be able to significantly reduce the costs associated with handling VAT processes. E-invoicing and the automatic transfer of data to tax administrations will reduce the time spent on manual processes, allowing companies to save on operational costs and human resources.