The EU is steadily reshaping the future of digital VAT. At the heart of this transformation is the eInvoicing standard EN 16931 update, which ensures electronic invoices contain all the essential information while staying technologically neutral and compliant with EU legislation on privacy, data protection, interoperability, and VAT rules.
Recent developments make it clear: businesses that align early with EN 16931 and its extensions will stay ahead of compliance requirements and be ready for the VAT in the Digital Age (ViDA) framework.
Extending EN 16931 for B2B transactions
On 29 September 2025, the European Committee for Standardization (CEN) published additional requirements allowing businesses to extend EN 16931 for B2B transactions. This standard had been ratified on 2 June 2025.
Key points:
- Published guidance on adapting business rules and code lists while maintaining semantic interoperability
- Supports industry-specific or bilateral requirements without breaking compliance
Businesses can customise invoicing processes for their sector or pratners while remaining compliant with EU standards.
Updated technical specifications
Between October and November 2025, updated versions of EAS Code Lists and Validation Artefacts were published.
- EAS & VATEX code lists follow a bi-annual schedules: releases on 15 May and 15 November each year
- Validation artefacts updates as needed, depending on stakeholder agreement and complexity
This matters as keeping up-to-date ensures your systems validate invoices correctly and avoid compliance issues.
Ratification of Semantic Data Model & VAT reporting guidance
- 7 November 2025: The Semantic Data Model of the Core Elements of an Electronic Invoice (EN 16931-1:2025) was approved
- 7 December 2025: The Working Group ratified the document, VAT reporting and gap analysis with current e-invoicing standardization deliverables. Under the ViDA initiative
The ViDA mandate introduces near real-time VAT reporting for intra-EU transactions, based on EN 16931-1. Businesses now have clarity on which invoice data must be reported to tax authorities and how to align with emerging standards.
Digital reporting requirements (DRR)
The upcoming DRR message is a VAT report, not an invoice:
- It is not considered a CIUS,
- Does not need to follow CIUS development rules
- Does require all mandatory invoice elements from EN 16931.
Understanding the distinction helps businesses prepare for reporting obligations without overcomplicating invoicing processes.
EN 16931 and the ViDA initiative aren’t just regulatory exercises, they’re shaping how businesses handle invoicing and VAT reporting in real time across the EU. Early alignment reduces compliance risk, streamlines processes, and positions companies to take advantage of digital VAT efficiencies.
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At Fintua, we help businesses navigate regulatory changes with clarity and confidence. From VAT compliance to multi-jurisdictional tax processes, our experts and technology keep you ahead of change.
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Authors
Lisa Dowling
Specialising in International VAT Compliance solutions, Lisa brings a wealth of knowledge and insight in her dealings with a host of international clients ranging from start-ups through to multinationals. With 21 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
