End of intra-model European electronic invoice and new rules introduced

A major shift is coming for VAT compliance in the European Union as the Intra models will be abolished for tax purposes starting July 1, 2030. Under the EU Directive 516 of 2025, businesses conducting intra-EU operations will be required to issue electronic invoices with new rules.

The long-standing Intra models, which businesses have relied on for tax-related reporting, will continue to exist but only for statistical purposes. The EU’s latest directive introduces electronic invoicing for all B2B transactions between operators within the European Union. The goal is to streamline tax reporting and improve the tracking of VAT across member states, reducing fraudulent activities.

With the new system, each country will be responsible for transmitting tax-related transaction data to a central hub known as VIES (VAT Information Exchange System). VIES will aggregate this data, enabling cross-checks to prevent VAT fraud and ensuring better tax compliance across Europe.

VIDA 2030 Package: The transition towards mandatory electronic invoicing is part of the broader VIDA 2030 Package, which was officially published in the Official Journal of the European Union (OJEU) on March 25, 2025. The package outlines new digital reporting requirements, including the adoption of CII and UBL formats—a departure from the XML format currently used for Italian electronic invoices.

This updated system aims to eliminate the need for businesses operating in multiple EU countries to manage separate VAT transmissions and registrations. Instead, the central VAT authority will store financial transaction data for up to five years, ensuring a secure and standardized VAT reporting mechanism across the union.

As of July 1, 2030, businesses will no longer need to file Intra models for tax purposes, as all necessary transaction details will be included in the new electronic invoice system. This means operators must provide financial and bank details when issuing invoices, ensuring transparency and monitoring of financial flows within the European VAT system.

This regulatory overhaul represents a historic move towards a fully digital VAT reporting framework, reducing administrative burdens for businesses and strengthening fraud detection efforts at the EU level. As the deadline approaches, companies across Europe must prepare to transition to the new system and embrace the future of digital tax compliance.