- EN 16931 Standard Overview: The EN 16931 standard, published in April 2017, establishes a unified framework for electronic invoicing across the EU, driven by Directive 2014/55/EU, and outlines specifications for e-invoice content in machine-readable XML formats.
- Impact of ViDA Reforms: The upcoming ViDA reforms will redefine electronic invoices to align with EN 16931, mandating structured e-invoicing and digital reporting for cross-border transactions starting July 1, 2030, with interim measures for domestic transactions expected to begin in 2025.
- B2B Limitations and Upcoming Enhancements: While EN 16931 has been effective for business-to-government transactions, it lacks features necessary for business-to-business invoicing, such as multiple purchase order references and VAT for split payments. An updated version is planned for release in 2025 to address these gaps.
- Core Invoice Usage Specifications (CIUS): Countries are creating CIUS to customize EN 16931 for specific regulatory needs while remaining compliant with the core model. Examples include Peppol BIS and XRechnung, which adapt the standard to local requirements.
- Ongoing Development and Future Importance: The EN 16931 standard is vital for the EU’s digital transformation in tax processes, aiming for a harmonized VAT ecosystem. Its enhancements and the implementation of ViDA reforms are expected to significantly influence e-invoicing practices across the EU.
Source Forbes
