Source: Agenzia delle Entrate
Why this market is moving now
- Since 14 April 2025, Member States can mandate domestic e-invoicing without a separate EU derogation.
- EU-wide digital reporting for cross-border B2B supplies starts on 1 July 2030.
- Countries with existing real-time reporting must align with the EU system by 1 January 2035.
- The Commission puts the 2023 VAT compliance gap at 128 billion EUR, which is the policy case for digital reporting.
Key figures
Each figure names the source it came from. Open the source list below to read the quoted line.
| Figure | Value | Year | Source |
|---|---|---|---|
| The EU adopted the VAT in the Digital Age (ViDA) package on 11 March 2025. | 11 March 2025 | 2025 | European Commission, Taxation and Customs Union |
| Since the ViDA package entered into force on 14 April 2025, EU Member States may introduce mandatory domestic e-invoicing under specific conditions. | 14 April 2025 | 2025 | European Commission, Taxation and Customs Union |
| Digital reporting requirements for cross-border B2B transactions in the EU apply from 1 July 2030. | 1 July 2030 | 2030 | European Commission, Taxation and Customs Union |
| EU Member States with a domestic real-time digital reporting obligation must align it with the EU system by 1 January 2035. | 1 January 2035 | 2035 | European Commission, Taxation and Customs Union |
| The ViDA acts were published in the Official Journal of the EU on 25 March 2025 as Directive 2025/516, Regulation 2025/517 and Implementing Regulation 2025/518. | 25 March 2025 | 2025 | European Commission, Taxation and Customs Union |
| The EU VAT compliance gap reached 128 billion EUR in 2023. | 128 billion EUR | 2023 | European Commission, Taxation and Customs Union |
| Romania had the highest VAT compliance gap in the EU in 2023 at 30%, ahead of Malta at 24.2%. | 30 % | 2023 | European Commission, Taxation and Customs Union |
| Italy's tax agency says 2.4 billion invoice files went through its national e-invoicing hub (SdI) in 2025. | 2.4 billion invoice files | 2025 | Agenzia delle Entrate |
| 5.5 million taxpayers issued invoices through Italy's SdI in 2025, up from 3.9 million in 2020. | 5.5 million issuers | 2025 | Agenzia delle Entrate |
Sources and method
The figures on this page come from the public sources listed below. Read how we work.
- European Commission, Taxation and Customs Union: VAT in the Digital Age (ViDA) - Taxation and Customs Union (2025-03-11)
Quoted lines
- Figure 1
The VAT in the Digital Age (ViDA) package was adopted on 11 March 2025 following re-consultation of the European Parliament
- Figure 2
Upon entry into force (14 April 2025), Member States are able to introduce mandatory e-invoicing under specific conditions
- Figure 3
Digital Reporting Requirements will affect cross-border B2B transactions from 1 July 2030.
- Figure 4
By 1 January 2035, Member States with a domestic digital real-time transaction reporting obligation must align their systems with the EU model and standards
- Figure 5
The ViDA package was published in the Official Journal of the European Union under the L-series on 25 March 2025.
- Figure 1
- European Commission, Taxation and Customs Union: European Commission releases report on tax gaps to support competitiveness and fairer tax systems (2025-12-11)
Quoted lines
- Figure 6
The VAT compliance gap in the EU reached 128 billion EUR in 2023, with Romania (30%) and Malta (24.2%) recording
- Figure 7
with Romania (30%) and Malta (24.2%) recording ed the highest VAT compliance gaps, while Austria (1%) and Finland (3%) performed best
- Figure 6
- Agenzia delle Entrate: Le attività per l'innovazione e la crescita del Paese nel 2025 (2026-03-25)
Quoted lines
- Figure 8
File fattura gestiti sul Sistema d'Interscambio (SdI) 1,9 2 2,1 2,2 2,4 2,4 (dati in miliardi)
- Figure 9
Soggetti che emettono fatture con SdI (dati in milioni) 3,9 4,1 4,6 4,8 5,4 5,5
- Figure 8
Companies to watch
Sovos
Tax compliance software vendor whose home page lists e-invoicing among its products. Source: https://www.sovos.com
Basware
Invoice and AP automation vendor whose site lists an e-invoicing network, sending and receiving. Source: https://www.basware.com
Pagero (Thomson Reuters)
E-invoicing and AP/AR automation provider, now presented under Thomson Reuters. Source: https://www.pagero.com
Pennylane
French accounting platform that advertises electronic invoicing to customers. Source: https://www.pennylane.com
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the European Union market - 03Market size, 2021 to 2025
Historical series and growth rates - 04Outlook to 2031
Base, low and high scenarios with stated assumptions - 05Rules, policy and deadlines
Regulation and programmes that change demand - 06Drivers and barriers
What accelerates or slows adoption, by customer segment - 07Prices, costs and margins
Unit economics where public data allows - 08Competitive landscape
8 to 12 company profiles with recent moves - 09Opportunities and risks
For new entrants, suppliers and investors - 10Method and sources
Every assumption and source, listed
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Frequently asked questions
When does EU-wide e-invoicing and digital reporting start?
Under the ViDA package, per the European Commission, digital reporting for cross-border B2B transactions applies from 1 July 2030. Member States can already mandate domestic e-invoicing since 14 April 2025.
When was the ViDA directive adopted?
The European Commission says the ViDA package was adopted on 11 March 2025 and published in the Official Journal on 25 March 2025.
What is the EU VAT gap?
The European Commission estimates the EU VAT compliance gap at 128 billion EUR in 2023. Romania had the highest national gap at 30%.
What is the final ViDA alignment date?
By 1 January 2035, Member States with a domestic real-time reporting obligation must align their systems with the EU model, according to the European Commission.
How many e-invoices does Italy process?
Italy's tax agency reports 2.4 billion invoice files handled by its SdI hub in 2025, from 5.5 million issuing taxpayers.
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