From Europe to Southeast Asia, governments are reshaping e-invoicing rules and timelines, putting pressure on businesses to adapt. We will break down the latest changes across these key jurisdictions.
With the VAT in the Digital Age (ViDA) officially adopted by the EU on 11 March 2025, businesses have many questions about its rollout and impact on their operations. We answer the most frequently asked questions.
ViDA is leading to changes in several areas of Value Added tax (VAT) law, starting now and going on for the coming decade.
From its entry into force on 14 April 2025, ViDA immediately removed restrictions that previously prevented EU countries from introducing mandatory domestic e-invoicing.
Therefore, Member States can now introduce both mandatory domestic e-invoicing and digital reporting requirements (DRRs), as long as they align with ViDA by 2030. By 2030 electronic invoicing and DRRs will become mandatory for so-called intra-Community transactions.
Since ViDA’s approval, we are already seeing momentum across the EU, with several countries announcing plans to introduce mandatory e-invoicing and real-time reporting within the next few years. ViDA will see the intensification of the current wave of new Continuous Transaction Control (CTC) mandates to prepare for in the short term, with many EU countries already announcing initiatives or starting rollout.
No, the ‘grace’ period for businesses was taken into account when setting the 2030 deadline for mandatory electronic invoicing and DRRs for intra-Community transactions. Member States’ domestic mandates will follow each country’s legislative process and culture but we are seeing an average period of 18-24 months for businesses to adapt, with no grace period after that.
Many businesses gravely underestimate the work required to ensure data quality, including the long adaptation cycles for their different business applications to incorporate the data and process changes required for real-time reporting and e-invoicing.
The introduction of changes of this magnitude to business and administrative processes is never without challenges on both sides of the equation. Businesses will make mistakes that may take time to fix, and this only gets harder as governments do the same thing in parallel under the pressure of political deadlines.
All invoicing and related processes will be impacted by ViDA including any accounts payable and accounts receivable process and the associated information systems that support them. All invoicing needs to be reviewed against this backdrop and readied for the digitization paradigm shift that will come off the back of ViDA.
Whilst the reporting processes required to meet specific transmission protocols, authentication, and document exchange orchestration tend to get a lot of attention, businesses should be equally wary of the impact of CTC mandates generated or modified by ViDA on their upstream processes and data.
Many businesses have multiple ERP systems, multiple billing systems, accounts payable systems etc. for different lines of business or trading partner categories. Most of these systems process invoice data on a paper or PDF invoice manually or semi-automated which cannot be easily ‘upgraded’ to handle the data completeness and quality requirements of a stringent e-invoicing and e-reporting regime.
Beyond the headlines about mandatory e-invoicing and real-time reporting, the fine print of ViDA will drive a number of challenging modifications to business processes. This includes the very definition of what constitutes an invoice which will require billions of PDF invoices in the European Union to be converted to machine-readable formats.
To comply with ViDA, businesses will need to increasingly use software and service providers that can guarantee compliance with frameworks and laws that add up to a need for a complete rethink of invoicing processes and systems throughout most businesses.
Companies that currently use EDI systems, procure-to-pay or accounts payable automation software of SaaS services, customer communications management, order-to-cash, electronic billing presentment and payment solutions etc. must ask themselves how those platforms will handle the new requirements for e-invoicing and e-reporting under ViDA and associated regulatory initiatives.
These vendors specializing in business process optimization typically have little experience with this specific area of compliance. Most of them are not set up to anticipate and address the tens or hundreds of changes that typically follow the initial rollout of a CTC regime in any jurisdiction in a timely manner.
We advise businesses to contact their enterprise software vendors and service providers now to ask these questions – are they aware of these changes as a result of ViDA, and what is their plan to keep you compliant?
Under ViDA, cross-border transactions between EU countries will be subject to a new real-time reporting regime (DRR) that replaces the current requirement for a recapitulative statement. Each transaction will be reported individually to the respective national tax authority, which will then transmit the data within one day to a centralized European Commission-managed system known as “Central VIES”. This enhanced platform, launching in July 2030, will consolidate intra-EU B2B transaction data, integrate with systems like the Customs Surveillance System and the Central Electronic System of Payments (CESOP), and provide a unified interface for VAT number validation and transaction transparency across the EU.
In addition to these digital reporting sections of ViDA, intra-EU cross-border transactions are also affected by other parts of the proposal in other ways. For example, quite far-reaching changes will take place, removing administrative burdens for businesses moving their own stock between EU countries.
Want to know more about ViDA? Get in touch with an expert here or learn more about VAT in the Digital Age with this guide.
In this webinar will explain Belgium’s B2B e-invoicing fundamentals and showcase a live demo of Sovos’ end-to-end compliance solution.
Like many countries, the Czech Republic has experience with e-invoices for the purposes of reducing administrative strain, reducing associated costs and greater visibility into the nation’s transactions.
It has yet to implement a full mandate on electronic invoicing for any type of transaction. This could change quickly, however. Keep this page in your bookmarks to stay on top of the country’s e-invoicing plans.
There is no mandate for issuing electronic invoices for B2B transactions in the Czech Republic, nor have any plans been unveiled for the eventual implementation of a B2B e-invoicing mandate.
Issuing e-invoices is optional, but a supplier must acquire the buyer’s consent before legally transmitting an invoice electronically.
There is no blanket mandate covering B2G transactions in the Czech Republic.
Central, regional and local authorities must accept and process e-invoices if they meet the format according to the European Standard. That said, suppliers are not required to issue e-invoices.
These authorities are also obliged to use the Národní elektronický nástroj (NEN) platform as part of the e-procurement process unless they have been authorised to use another tool.
These are the dates to know in the Czech Republic’s e-invoicing journey.
If you fall within the Czech Republic’s remit for issuing e-invoices, it’s wise to choose a partner that can help – not just in this country, but everywhere you do business.
That’s where Sovos steps in. We act as a single vendor for tax compliance, providing peace of mind and allowing you to reclaim time to focus on growing your business.
No, there are no mandates for issuing electronic invoices in the Czech Republic. However, public authorities are required to be able to receive and process e-invoices should a supplier voluntarily issue one.
B2C e-receipts were abolished in 2023. The EET portal and related infrastructure have been decommissioned. As a result, there is no longer a legal obligation to issue e-receipts or report sales in real time, and taxpayers cannot voluntarily continue using the EET system.
While Hungary does not explicitly mandate the issuance of electronic invoices for most transactions, the country’s real-time invoice reporting (RTIR) scheme applies to all taxpayers and companies.
This can make understanding your requirements difficult, but this overview makes compliance simple. Be sure to bookmark the page to stay ahead of any future regulatory changes.
There is no mandate to issue and receive e-invoices for business-to-business (B2B) transactions in Hungary.
That said, businesses are required to participate in Hungary’s real-time invoice reporting (RTIR) scheme. This model allows for e-invoicing, though it doesn’t mandate it, given that it requires taxpayers and companies to report their invoice data to the Hungarian tax authorities in real time.
E-invoicing can be voluntary, provided the buyer’s consent is obtained prior to issuance.
Receiving and processing electronic invoices is mandatory for central, regional and local contracting authorities in Hungary.
It is not required for suppliers to issue invoices electronically to these public administrations, however, meaning that e-invoicing is not fully mandated in a business-to-government (B2G) context.
While there is no e-invoicing obligation in Hungary, the country does require the electronic transmission of invoice data. More specifically, the real-time invoice reporting (RTIR) scheme requires all taxpayers to send their invoice data to the tax authorities as the transactions happen.
Learn more about Hungary’s RTIR obligation.
Learn the key dates in Hungary’s e-invoicing journey.
You’re not required to issue electronic invoices in Hungary, but it does benefit some taxpayers to issue and receive them. If that sounds like you, Sovos can help.
If your business operates in multiple countries, you have multiple obligations to meet. Sovos can help there too.
We are the compliance partner of many major companies, a single vendor for all things tax compliance – including e-invoicing.
Want to learn more? Speak with us today.
No, e-invoicing is not mandatory for either B2B or B2G transactions in Hungary. That said, governmental entities must be able to receive and process electronic invoices.
Hungary’s real-time invoice reporting obligation requires all taxpayers to send their transaction data to the tax authorities in real time, however.
No, there is no mandatory format to issue electronic invoices in the country.
All domestic B2B transactions, intra-community supplies, exports, and B2C transactions as well.
June 17-18, 2025
Hilton Vienna Park | Am Stadtpark 1, 1030 Vienna, Austria
Join Sovos at the SAPinsider Europe Super Summit in Vienna!
We’re proud to be Gold Sponsors of From Migration to Modernization: Supercharging Your Business Transformation.
Whether you’re planning your move to SAP S/4HANA or optimizing an existing deployment, this summit will help you go beyond migration to drive true enterprise transformation. Discover actionable insights on data governance, cybersecurity, cloud scalability, intelligent automation, and more—all grounded in real-world expertise.
To review the full agenda for this event, click here.
Hilton Vienna Park | Am Stadtpark 1, 1030 Vienna, Austria
In today’s rapidly evolving regulatory landscape, tax departments are under increasing pressure to enhance efficiency, ensure compliance and deliver strategic value. However, securing an investment in tax technology often requires a compelling business case that resonates with organizational stakeholders. With the right strategy and organization buy-in, you can transform your tax.
Join us for this webinar where Sovos experts will be joined by an SAPinsider analyst to discuss how tax leaders can construct a persuasive business case for tax technology investment. Drawing from real-world experiences and best practices, we’ll explore how to align tax technology initiatives with broader organizational goals, quantify both tangible and intangible benefits and effectively communicate the value proposition to decision-makers.
Attend to learn how you can:
Quantify ROI, including cost savings, risk mitigation and process improvements.
Simplify support frameworks by centralizing your tax technology under one.
Transform your tax center into a profit center.
Anticipate future requirements and ensure flexibility in tax processes.
Strengthen your business case and engage stakeholders effectively.
Whether you’re a tax professional seeking to modernize your department or a finance leader evaluating technology investments, this webinar will equip you with the tools and insights needed to build a robust business case for tax technology.
Don’t miss this opportunity to learn how you can transform your tax function into an asset for the business.
Keeping up with evolving tax mandates across multiple countries is challenging. This webinar provides key insights into recent and upcoming regulatory updates—including VAT, SAF-T and e-invoicing—across 12 European countries, helping you stay compliant and prepared.
We recently partnered with StudioID on a global survey of 150 finance leaders to reveal significant insights into how companies are navigating the increasingly complex world of indirect tax compliance. The research, which included CFOs, EVPs/SVPs/VPs of Finance, and Finance Directors from companies with revenues ranging from $500 million to over $5 billion, provides a comprehensive look at the strategies finance leaders are implementing to stay ahead of changing regulations.
The survey found that an overwhelming 95% of finance executives believe ensuring accurate real-time data reporting is important or extremely important for improving tax and compliance operations. This shift reflects a fundamental change in how tax authorities operate globally.
Previously in indirect tax, the way that the government could enforce the law was always through periodic reporting, but it was an unsophisticated instrument. Now, continuous transaction controls have become very popular since it’s about sending data in real time to the government.
This transition means businesses are no longer simply reporting their subjective view of a period’s aggregate sales and purchasing numbers —tax authorities are increasingly gathering authenticated data in real-time and informing companies of their liability instead. The stakes are higher than ever, with non-compliance potentially halting business operations entirely rather than just resulting in penalties.
The complexity of global tax compliance is staggering. Approximately 30% of both US-based and international companies surveyed sell products and services across 2,000 to 5,000 different tax jurisdictions. Each jurisdiction has its own rules, rates, and reporting requirements. Requirements are also increasingly dynamic, with laws and technical specifications evolving to reflect tax administrations’ fine-tuning operations at an ever-increasing rate.
With initiatives like VAT in the Digital Age (ViDA) and e-invoicing mandates rolling out across Europe and beyond, companies must stay ahead of regulatory changes. Encouragingly, 87% of finance executives report having systems and processes in place to anticipate these upcoming mandates.
When it comes to successfully implementing current and upcoming e-invoicing mandates, finance leaders identified two primary challenges:
Additionally, 56% of respondents mention difficulty in making business decisions due to limitations around tax and compliance data accessibility and accuracy.
Finance leaders are implementing several key strategies to improve their indirect tax and compliance operations:
These investments are paying off—76% of finance executives report seeing a positive return on investment from their tax compliance software. However, cost remains a significant concern, with 91% identifying “lowering or maintaining compliance costs” as a top priority.
The Problem of Point Solutions
One notable finding is that 73% of respondents believe their companies use too many point systems to meet tax obligations across different geographical locations. The median number of systems currently in use is 40, with most wanting to reduce this number significantly.
There seems to be a lot of confusion in the market, whereby a lot of businesses think they need to replace their business software with regulatory-driven software. This simply isn’t true as there are multiple ways that leaders can make existing business software compliant.
As tax authorities worldwide continue advancing their technology, making compliance more complex and demanding, finance leaders must balance compliance requirements with business objectives. The most successful approach integrates tax considerations into core business processes rather than treating them as separate functions.
The message is clear: while tax compliance is becoming more complex, the right strategies and technologies can transform this challenge into an opportunity for greater efficiency and intelligence about your business. Whatever you set as your business objectives, make sure that your compliance software works in such a way that the tax is never a burden.
By staying ahead of regulatory changes and investing in the right solutions, finance leaders can ensure their organizations not only remain compliant but thrive in an increasingly complex global tax landscape.
Want to learn more about how finance leaders are adapting to the changing indirect tax landscape? Download the full research report, “The Future of Indirect Tax: How Finance Leaders Are Staying Ahead of Changing Regulations” for comprehensive insights and strategic recommendations. Download Now
Sales tax compliance in the U.S. has never been more complex – and the stakes have never been higher. With 19,000+ jurisdictions, relentless regulatory changes, and evolving audit practices, it’s easy for even well-resourced businesses to fall behind.
In this session, Sovos product and regulatory experts will unpack what’s driving today’s compliance challenges and how leading companies are preparing for what’s next, from ERP transformations to smarter tax technology investments.
We’ll also take a brief look at how real-time tax enforcement is reshaping compliance in Europe and beyond – and why U.S.-based companies should not assume “it won’t happen here”.
You’ll learn:
-Why future-proof solutions are essential for navigating intricate sales tax regulations and ensuring compliance across multiple jurisdictions
-How tax leaders can drive and shape the conversation around tax strategy, ensuring alignment with business goals and compliance requirements
-What to look for in a tax technology partner
-How to build a compelling business case for compliance investment
Whether you’re entering the US market, expanding into new states, or simply trying to stay audit-ready, this session will give you the actionable insights you need to future-proof your sales tax compliance strategy.
June 3-4, 2025
Congress Centre 28 Great Russell St, London WC1B 3LS, United Kingdom
We are thrilled to announce that Sovos will be Diamond Sponsors at the 7th Annual VAT Management Summit in London. The event brings together leading experts and professionals to discuss the latest trends, regulatory updates, and best practices in VAT compliance, indirect tax management and the global digital transformation of tax.
Both Christiaan van der Valk, General Manager, Indirect Taxtech and Ryan Ostilly, VP Product Management at Sovos, feature on the packed agenda.
To review the full list of this year’s topics and speakers, download a brochure, and register for the event, click here.
Congress Centre – 28 Great Russell St, London WC1B 3LS, United Kingdom
As some countries either introduce or consider introducing mandatory natural catastrophe insurance (e.g., Italy this year), France is ahead of the curve.
This is because France already has a specific compensation scheme in place for coverage of property against natural disasters, and has had one since 1982. The importance of the scheme is clear, as it is based on a statement in the preamble to the 1946 Constitution that French citizens are united and equal in bearing the burden of natural disasters. It is often referred to as the CATNAT or NATCAT regime.
Unlike in some countries where mandatory natural catastrophe insurance may be limited to insurance of buildings, various types of insurance are within the remit of the CATNAT regime in France.
First and foremost, damage to property coverage (both fire damage and any other damage to property) triggers the insured’s entitlement to cover against the effects of natural disasters. This is extended to damage to motor vehicles and, separately, also operating losses caused by damage to property.
It is worth highlighting that insurers providing these types of insurance must include a clause in their contracts outlining their coverage of natural disasters. Any provision to the contrary is invalid.
Insurers collect an additional premium (the so-called CATNAT premium) representing the coverage of natural disasters at a rate set in law and based on the type of insurance, subject to exemptions. Following a change in January 2025 due to increased costs caused by climate change, the premium rate for property damage is now 20%, whilst there are rates of 9% and 0.75% in the case of motor coverage.
Insurers have a choice on what to do with this premium amount. They can choose to retain it themselves, in which case they are responsible for compensating policyholders for damage caused by natural disasters. Alternatively, they may opt to utilise the private reinsurance market. Finally, and most significantly, there is also the option for insurers to reinsure the premium with the state-backed reinsurance body, Caisse Centrale de Réassurance (CCR).
CCR only provides cover in the event of genuine natural disasters, as defined by their exceptional intensity. Floods and earthquakes typically satisfy this, whereas storms and hail do not as the insurance market can cover them as normal. Where CCR does provide compensation, it offers unlimited reinsurance coverage.
The CATNAT premium is subject to premium tax treatment, meaning that it also attracts IPT. Additionally, an additional insurer-borne levy due on property risks is calculated as 12% of the CATNAT premium. These are the contributions to the Major Risk Prevention Fund (or Fonds Barnier), which are included on the IPT return.
Sovos is well placed to assist both in identifying whether a particular policy is within the scope of the CATNAT regime and with the ultimate declaration and settlement of the taxes due on the CATNAT premium.
Hungary’s tax penalty consequences of non-compliance with tax requirements are governed by the Act on Rules of Taxation.
The law outlines a range of sanctions for non-compliance, including tax penalties, default penalties, late payment interest and self-revision fees. This blog will provide an overview of each sanction and summarise recent changes in this area.
In Hungary, there are four types of payable sanctions for not complying with tax rules. While most of these sanctions are imposed by the Tax Authority, the self-revision fee is calculated and settled through self-declaration.
A tax penalty is imposed as a result of an audit when the Tax Authority identifies a tax shortfall during an inspection. The standard rate is 50% of the unpaid tax, but it can increase to 200% in some cases.
A default fine is a sanction that the tax authority may apply in case of a breach or failure to comply with tax obligations specified in legislation regarding taxes and budgetary subsidies. Most default fines are determined as fixed fees rather than a percentage. The law determines the maximum amount of this fine. The Tax Authority has the discretional right to levy it in the maximum amount, decrease it, or void it.
The amount that the Tax Authority can levy depends on the type of non-compliance and the taxpayer’s status, i.e., whether it is an entity or an individual taxpayer. For example, a default penalty can be levied for missed or late submission of a tax return.
LPI is charged when tax liabilities are not paid on time. The interest is calculated daily, and the rate is based on the central bank’s base rate plus five percentage points divided by 365. The Tax Office determines and assesses the amount of LPI.
A Self-Revision Fee (SRF) applies when taxpayers voluntarily amend their tax returns to report a higher amount than initially declared. The SRF is calculated at a rate equivalent to the prime rate. In cases where the same return is revised multiple times, the applicable rate is increased by 50%.
The SRF must be calculated and self-declared simultaneously with the revised tax liability.
The severity of sanctions and applicable settlement rules vary based on the so-called qualification of the taxpayers. Taxpayers are categorised into three groups: Reliable, Neutral and Risky. Reliable taxpayers benefit from more lenient treatment, including reduced default penalties, whereas risky taxpayers are subject to stricter sanctions. For neutral taxpayers, standard penalty levels apply by default.
Recent changes to Hungary’s tax penalty regime include the following.
The Hungarian government doubled certain penalty amounts from 1 August 2024:
Effective from 1 January 2025, there were changes in:
Despite the change in the calculation method, no changes were made regarding the threshold under which LPI is not payable. This amount remained HUF 5,000 annually.
The Hungarian Tax Office issued a notification about the changes in LPI settlement on 11 April 2025 and published the corresponding guidance on its website on 3 February 2025.
For further information about tax compliance in Hungary and beyond, contact Sovos’ team of experts today.
In this new IPT webinar, we’ll take a look across the IPT landscape, with a particular focus on France’s fire policies and the recent rate changes and Hungary’s changes to the late payment interest (LPI) settlement.
As indirect taxes (sales tax, VAT, GST) continue to play an increasingly vital role in global economies, tax authorities are modernizing their processes to improve efficiency and oversight. This evolving landscape presents businesses with both new opportunities and complex challenges when it comes to maintaining compliance.
Join Sovos expert Christiaan Van der Valk as he highlights five key trends in Indirect Tax Digitization, offering valuable insights into how businesses can adapt to the shifting regulatory environment. You will also learn strategies for staying compliant and ahead of the curve in this rapidly changing space.
We will cover:
The shifting landscape of indirect tax and its growing significance.
The five key trends business leaders must take into consideration when developing their tax and compliance strategy
How to develop a long-term plan and stay ahead
We hope to see you there!
Denmark has mandated the use of electronic invoices, though not in all contexts, since 2005 – making it an early adopter of the technology. E-invoicing is required for suppliers of goods and services when conducting business with public entities (B2G).
There is no e-invoicing mandate for B2B transactions, however. This page provides an overview of the state of electronic invoicing in Denmark. Be sure to bookmark it to stay updated on future regulatory changes.
There is no e-invoicing mandate for B2B transactions in Denmark.
However, in May 2022, Denmark adopted the new Danish Bookkeeping under which Danish registered businesses or foreign companies with permanent establishments that have accounting obligations in Denmark are required to adopt digital bookkeeping systems compliant with the new regulations.
According to the new regulations, taxpayers in scope must use Digital Bookkeeping Systems capable of generating, receiving and storing electronic invoices in the Peppol BIS and OIOUBL (the Danish-specific version of the UBL) formats.
Businesses in Denmark can choose a digital bookkeeping system registered with the Danish Business Authority – which indicates it complies with the new Digital Bookkeeping Act). If a business opts to use a digital bookkeeping system that is not registered, it falls on them to ensure their systems meet the requirements according to the new Danish Bookkeeping Act.
The requirement to use compliant digital bookkeeping systems was introduced in a phased timeline:
In Denmark, sending and receiving electronic invoices is mandatory for B2G transactions. This means that suppliers of goods and services to public authorities and institutions must issue invoices electronically—either in the Peppol or national OIOUBL format.
The Danish government mandates using its NemHandel platform for sending and receiving e-invoices in a B2G context.
Peppol is widespread in Denmark, serving as one of the two accepted means of formatting an electronic invoice. It’s said that 99% of B2G invoices in the country are electronic, and now the focus is improving the uptake of e-invoices in B2B transactions – which is not mandated.
The Danish Business Authority (ERST) is the nation’s Peppol Authority. This means it is responsible for registering companies that want to become a Peppol Access point or Service Metadata Provider (SMP), reporting, representing Denmark’s interests regarding Peppol and other related administrative efforts.
Learn more about Peppol e-invoicing.
Follow Denmark’s e-invoicing journey with these key dates.
Complying with the tax requirements of one country can be tough; never mind multinational compliance everywhere you do business. Add e-invoicing requirements to that mix, and it can take up a lot of time and headspace in your organisation.
Sovos is your ideal compliance partner for wherever you do business: a single vendor for all of your tax requirements that frees you up to focus on what truly matters to you.
Contact us today to learn more about how Sovos can help.
Issuing electronic invoices is mandatory in Denmark for B2G transactions (suppliers of goods or services to public authorities and institutions), but there is no mandate for B2B e-invoicing in the country.
Digital bookkeeping systems must be able to issue, send, receive and store e-invoices in both the Peppol BIS and OIOUBL (the Danish-specific version of the UBL) formats.
This webinar will deepen your understanding of cross-border transactions within SAP. Whether you’re navigating the complexities of VAT or seeking to enhance SAP’s capabilities, this session will provide you with actionable insights and strategies to optimise your processes.
Join us on 30 April for our next VAT Snapshot webinar where we’ll be taking a look at the latest e-invoicing updates across 10 countries: Greece, France, Belgium, Malaysia, Philippines, Portugal, Angola, Israel, Slovenia and Croatia.