The EU VAT in the Digital Age (VIDA) directive, effective July 1, 2030, will mandate e-invoicing for intra-Community B2B transactions, aiming to harmonize invoicing, enable real-time digital reporting, and combat fraud. While countries like Italy, Spain, Belgium, Germany, and France are moving ahead with domestic e-invoicing, the Netherlands remains cautious, raising concerns about SME burdens. Software providers warn that without a domestic mandate, Dutch businesses will face a costly dual system, while benefits such as standardization, automation, and higher VAT compliance would be delayed. For government, hesitation risks weaker fraud prevention and lower revenues, leaving the Netherlands behind EU peers until full adoption.
EU's VAT in the Digital Age (VIDA) Directive Mandates E-Invoicing and Digital Reporting
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Global
Author: Ljubica Blagojević
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General information
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Content accuracy validation date:
22.08.2025
Content accuracy validation time:
00:00h
Current Situation
Several EU countries—including Italy, Spain, Belgium, Germany, and France—have already committed to mandatory domestic e-invoicing, while the Netherlands remains hesitant. Leading software providers (Exact, Unit4, Visma, Wolters Kluwer) warned the State Secretary that without a domestic mandate, companies face a dual system (VIDA-compliant for cross-border and traditional for domestic), increasing costs and inefficiencies.
Advantages
E-invoicing brings standardization (e.g., via Peppol), reduced manual work, higher data quality, more accurate VAT returns, and greater efficiency for both businesses and tax authorities. For the Dutch Tax and Customs Administration, it means lower audit costs and more stable VAT revenue. Software providers stress the urgency of clarity on standards to guide investment.
Political Hesitation
Resistance stems mainly from concerns over added burdens on SMEs. Still, State Secretary now acknowledges the efficiency gains and has left open the possibility of extending mandatory domestic e-invoicing and digital reporting. In a letter to Parliament, he stated that the final decision will depend on the views of entrepreneurs and service providers.
- For businesses: Without a domestic mandate, Dutch companies risk higher administrative costs and losing out on efficiency gains enjoyed in other EU states.
- For government: Delayed adoption could weaken fraud prevention and reduce VAT revenue potential.
- For SMEs: While concerns about compliance costs are valid, long-term benefits include simplified processes, automation, and reduced errors.
- Strategic impact: The Netherlands’ hesitation could leave it lagging behind EU peers, forcing businesses into a fragmented system until full adoption occurs.