Regulatory updates - European Union

The Council has reached a provisional agreement on new measures to strengthen the fight against VAT fraud across the EU. The framework aims to improve cooperation between member states and EU bodies, including the European Public Prosecutor’s Office (EPPO) and the European Anti‑Fraud Office (OLAF), by granting them more direct access to key VAT data.

Under the new rules, EPPO and OLAF will be able to access information on cross‑border business transactions, including data held by Eurofisc, the EU’s anti‑VAT fraud network. This will allow investigative bodies to obtain first‑hand information more quickly, accelerating investigations and improving coordination between authorities.

The measures specifically target cross‑border VAT fraud, including missing trader intra‑community fraud (carousel fraud), which continues to cause significant revenue losses across the EU. The enhanced access to data is expected to strengthen detection capabilities and support faster enforcement actions.

Impact

The improved cooperation framework is designed to reduce VAT fraud losses, which are estimated to amount to billions of euros annually, while ensuring a more level playing field for compliant businesses. By increasing transparency and enabling quicker investigations, the rules aim to enhance the overall effectiveness of VAT enforcement across the Union.

Next steps

The new rules are part of an amendment to Council Regulation 904/2010 on administrative cooperation and combating VAT fraud. Following the expected opinion of the European Parliament, the Council will proceed with formal adoption. The regulation will enter into force twenty days after publication in the Official Journal of the European Union.

ONESOURCE Pagero, an active contributor to the Peppol ViDA pilot, has reached the first milestone by successfully passing the initial conformity test for access points operating under the 5-corner model designed for ViDA compliance.

Under the ViDA package, adopted on March 11, 2025, mandatory intra-Community e-invoicing and digital reporting requirements (DRR) will take effect from July 1, 2030.

The Peppol ViDA pilot was officially launched in December 2024. It is designed to demonstrate how the 5-corner model can support compliance with intra-Community e-invoicing and DRR obligation.

More than 100 participants, including 20 Tax Administrations, Peppol authorities, service providers, and businesses, are involved in the pilot. Together, they are defining the e-invoicing and DRR architecture needed to support these obligations, as well as the specifications required to support them.

This conformance test demonstrated, among others, ONESOURCE Pagero’s ability to generate EN-compliant e-invoices, EN-compliant DRRs, exchange these in real-time with tax administrations and other service providers, as well as process response messages generated by all parties invoiced in a 5-corner exchange.

We look forward to real-life ViDA pilot testing, which is to be scheduled soon, and are ready to support those customers who would like to join the pilot together with us.

The European Commission has opened a public consultation to review and update the EU rules for electronic invoicing in public procurement. This review focuses on the eInvoicing Directive (Directive 2014/55/EU) and is an important step in shaping the future of digital invoicing across EU.

Why does this matter?

The current eInvoicing Directive was introduced in 2014 and helped create a common European standard for electronic invoices in public sector procurement and later in 2017 the creation of the well-known standard EN 16931 was developed in response to Directive 2014/55/EU. However, the Commission’s evaluation today shows that in practice, many businesses still face:

• Different national approaches
• Limited interoperability between systems
• Extra complexity when operating across borders

As a result, the full benefits of eInvoicing are not yet being realized.

Therefore, the EU commission aim for a future‑proof eInvoicing framework that works smoothly for both public authorities and businesses operating across the EU.

How does this link to ViDA?

This initiative is closely connected to the VAT in the Digital Age (ViDA) reform. ViDA plans to introduce mandatory electronic invoicing for cross‑border transactions by 2030, making today’s consultation an early but important milestone on the road to wider digital reporting.

Next steps and timelines

The Commission encourages feedback from all interested stakeholders, including businesses of every size, especially SMEs, public authorities, civil society organisations, and eInvoicing service and solution providers. Contributions can be made through the EU’s “Have Your Say” portal by completing an online questionnaire. This is a great chance for businesses to influence the future shape of the E-Invoicing framework in the EU. More updates will follow, so stay tuned!