Jennifer van den Berg
European Director, Kreston Global Tax Group and Managing Partner, Kreston VDN (Belgium)
E-invoicing and ViDA: a new era for VAT in Europe
June 18, 2026
Electronic invoicing and “VAT in the Digital Age”, or ViDA for short, is gaining rapid traction across Europe and beyond. What was once seen as a technical or administrative improvement is now becoming a central pillar of tax compliance. This transformation is at the heart of the European directive, which aims to modernise the VAT system and align it with today’s digital economy.
But what does this mean in practice?
An electronic invoice is often conceptualised as a PDF sent by email. However, under the new rules, this is no longer sufficient. The focus is shifting to structured electronic invoices: invoices created in a machine-readable format, typically an XML, which allows for the automatic processing between systems without manual intervention. This ensures that invoice data can flow directly from the supplier’s system to the customer’s accounting software, reducing errors and increasing efficiency.
Across Europe, a common standard is emerging. Many countries, including Belgium, are adopting the Peppol network, a secure framework that allows businesses to exchange structured invoices in a standardised way. Within the broader ViDA framework, this shift will become even more significant in the future. From 1 July 2030, e-invoicing and digital reporting are also expected to become mandatory for cross-border transactions within the EU.
Why is this shift happening?
The move towards e-invoicing is driven by both tax policy and business efficiency.
From a tax perspective, one of the key objectives is reducing the VAT gap. This gap represents the difference between the VAT that should have been collected and what is actually received by tax authorities. Across the EU, this gap amounts to billions of euros lost each year, often due to fraud, errors, or incomplete reporting. Structured e-invoicing creates a clear and reliable audit trail for each transaction, making it easier for authorities to monitor compliance.
At the same time, the benefits for businesses are significant. Invoicing automation reduces manual work, lowers administrative costs, and minimises the risk of errors. Invoices can be processed faster, which often leads to quicker payments and improved cash flow. In addition, the elimination of paper contributes to more sustainable business practices. E-invoicing is therefore not only a compliance requirement, but also an opportunity for companies to streamline their operations and support their digital transformation.
The Belgian experience: moving ahead with Peppol
As a Belgian-based firm, we are experiencing these changes first-hand. Belgium has taken a proactive approach by introducing mandatory structured e-invoicing for domestic B2B transactions as from 1 January 2026. In practice, this means that companies established in Belgium, as well as foreign companies with a fixed establishment for VAT purposes in Belgium, must issue and receive invoices via a structured format, typically through the Peppol network.
The Belgian implementation is being rolled out in phases. At this stage, there is no real-time reporting to the tax authorities yet. However, this is expected to follow in a later phase, likely around 2028, in line with broader European developments.
From our daily practice, we see that businesses are actively preparing for these changes. This includes reviewing their invoicing processes, updating their systems, and ensuring that their data is complete and accurate. While the transition requires effort, it also creates an opportunity to improve internal processes and reduce administrative burdens in the long term.
Looking ahead
The transition to e-invoicing marks a significant shift in how VAT compliance is managed. With many of these changes already in place or approaching quickly, supporting our clients in adapting to these new requirements is one of the top priorities in our daily work. The combination of national initiatives and broader European or international reforms, such as ViDA, makes this a dynamic and evolving landscape, that needs consistent monitoring.
Do you have questions about e-invoicing or ViDA?
You can contact us directly at Kreston MDS or email [email protected] .
