VAT in the digital age – modernising the European VAT system

The April 2025 updated edition of this publication is now available at the following link:

This factsheet [from 2023] summarises the main changes from the European Commission’s proposals to modernise the European VAT systems. The proposals were issued in December 2022 with the intention to:

• make the VAT system more suitable for e-commerce
• help fight fraud and improve fairness
• reduce administrative burden
• overall make VAT reporting more efficient

The proposals’ main area of change is to promote e-invoicing and have a near real-time reporting system for intra-EU cross-border commerce by 2028. Implementing the provisions will be a challenge for many tax authorities and businesses, especially SMEs (small and medium-sized entities).

This publication aims to support businesses and their advisors who should take note of the potential changes as soon as possible.