Mandatory e-invoicing in the EU from 2030: What does ViDA mean and how can you prepare?

A major change is coming, the European Union is introducing mandatory e-invoicing under the ViDA initiative. What does this mean for your company, and how can you prepare for digital transformation in a timely and effective way?

Published since: 22. 10. 2025

Inspiration

The invoicing revolution is coming. Is your company ready?

Starting July 1, 2030, the European Union will introduce mandatory electronic invoicing for cross-border B2B transactions as part of the ViDA (VAT in the Digital Age) initiative. By 2035, this requirement is expected to extend to domestic invoices across all EU member states.

This means that paper invoices and unstructured PDF files will no longer be accepted for VAT purposes. The new standard will be structured electronic invoices, enabling automated data processing, ERP integration, and full auditability.

The goal of ViDA is not just digitalization but a fundamental transformation that interconnects tax systems across the EU, increases transparency, simplifies compliance, and reduces opportunities for VAT fraud and evasion. For companies, this represents a major shift that cannot be postponed until the last minute.

Why is the EU introducing ViDA?

Initiative ViDA (VAT in the Digital Age) was created as a response to the long-term problem of tax evasion, the fragmentation of rules across the EU and the slow digitization of accounting processes. The EU estimates that annually loses up to 93 billion euros in VAT , due in part to inefficient reporting and manual processes. The main benefits of ViDA for companies and states:

What does this mean for businesses?

The introduction of ViDA will bring not only new obligations for companies but also a fundamental shift in how invoices are issued, received, and stored in the future. At first glance, it may seem like a purely technical change — in reality, it represents a deep transformation of internal processes and IT infrastructure.

The first major impact will be the end of paper invoices and unstructured PDFs. From July 2030 onward, only invoices that comply with the European standard for structured electronic invoicing will be accepted for VAT purposes. In other words, an invoice will no longer be a piece of paper or an email attachment — it will become a data file in a precisely defined format, typically XML or UBL, allowing for fully automated processing.

This shift also brings a requirement for digital archiving. E-invoices will need to be securely stored for the legally required period — typically 10 years in the Czech Republic — in a way that enables easy retrieval and auditing. It will no longer be sufficient to save documents on a shared drive or in an email inbox. Companies will need to prove that invoices have not been altered, that access and modifications can be traced, and that archiving complies with all legal requirements, including GDPR.

Although this may sound like an additional bureaucratic burden, ViDA actually opens the door to significant efficiency gains. Structured invoices enable automation across the entire invoicing process — from receipt and approval to posting and payment. Companies that prepare early and take a proactive approach will gain a competitive advantage through faster internal processes, reduced error rates, better cash flow control, and lower administrative costs.

Ultimately, ViDA is not just a regulation to comply with — it is an opportunity. An opportunity to modernize, digitalize, and eliminate inefficient or outdated invoicing and accounting practices.

Miroslav Pospíšil

Team Leader Vendor Invoice Management

Introduction of mandatory e-invoicing is not a one-time IT project . It is transformation of processes across the company from the accounting department to compliance to the IT department . Successfully managing this change therefore requires a systematic approach that begins with a deep understanding of the current state. The first step is audit of existing invoicing processes . Every business should ask itself simple but key questions:

How do we issue invoices today?

How do we receive them?

Who approves them, where do we store them and how long do we archive them?

If you have branches or business partners in other EU member states, it is necessary map the differences in practice and technology between individual countries. Although ViDA brings unification, implementation in individual states may have national specificities.

The following is the selection of the appropriate one system for digital document management , which can work with structured e-invoices, ensure their correct storage, auditability and integration with yours ERP system or other internal applications. It is important to choose a solution that is not only technically ready for European standards, but also corresponds to the size and needs of your company.

It must also be part of the preparation thorough training of employees . People in finance, administration and IT departments need to understand the new logic of the invoicing process, i.e. how the new formats work, what the approval process will be, how it will be possible to track invoices in real time and what will change in terms of responsibility for data accuracy.

A fundamental role is also played by monitoring the development of legislation . Although the ViDA framework is based on an EU decision, each member state can modify the introduction of e-invoicing . Therefore, your solution must be flexible enough to respond to possible changes in national rules. Whether it is the length of archiving, data access rules or data transfer to financial authorities.

Experience across projects shows that companies that adapt to this change are best able to handle it they prepare ahead of time, not in response to the pressure of an approaching deadline . The transition to e-invoicing is an ideal opportunity to revise the entire accounting workflow, remove bottlenecks and bring greater speed, overview and certainty to financial management.

ViDA as an impulse for Digital Transformation

Mandatory electronic invoicing under the ViDA initiative will fundamentally change how companies across the European Union manage their accounting documents. However, this is not just about meeting a legal obligation. Businesses that prepare early and strategically can use this moment as an opportunity to modernize and optimize their internal processes.

The digitalization of invoices brings measurable benefits, from reducing errors and accelerating cash flow to improving financial visibility and lowering administrative costs. It also opens the door to broader digital transformation initiatives, including automated document processing, digital contract management, and controlled archiving.

Start preparing your company for the digital era of invoicing today and turn this regulatory change into a competitive advantage.