Electronic Invoicing 2025: What Changes Are Coming with New Extensions and Updates?

Electronic Invoicing Changes in 2025: Italy Seeks Extension from the European Union

The electronic invoice system in Italy represents a significant shift, simplifying processes and combating tax evasion.
Initially, electronic invoicing was mandated for the Public Administration.
This requirement gradually expanded to include VAT-registered businesses, leaving forfaitaries exempt, and finally extending to all VAT recipients.

However, many are unaware that the introduction of electronic invoicing is not a permanent fixture but rather contingent on authorization from the European Union.
This authorization will expire on December 31, 2024.
Italy has already requested an extension to continue leveraging this innovative framework.

Italy’s Request for Extension

Italy’s recent extension request aims to secure continued use of the electronic invoicing system until December 31, 2025, after which the “ViDA package” is expected to take effect.
The proposed execution decision from the EU Council, referenced in document COM (2024) 447, is currently awaiting approval.

This extension is crucial to maintain the progress made in reducing tax evasion.
The EU decision should occur during the upcoming Ecofin meeting in November, where amendments to Directive 2006/112/EC will also be deliberated.
This modification seeks to eliminate the requirement for recipient authorization for electronic invoices, thus facilitating the shift towards a digital system.

What the ViDA Package Includes

The requested extension through 2025 aligns with the impending implementation of the ViDA (VAT in the Digital Age) package.
This initiative aims to modernize VAT across the EU and incorporates the Italian electronic invoicing model.

Key elements of the ViDA package include:

• Mandatory use of electronic invoicing as the default method for issuing invoices.
• Member states can mandate B2B electronic invoicing without seeking exemptions from the EU.
• Electronic invoicing will be compulsory for cross-border transactions, using a common standard.
• Abolition of summary invoices.

It’s important to note that starting January 1, 2025, the ban on electronic invoicing for health professionals will also be lifted, as privacy concerns regarding sensitive health data have been the primary reason for previous exemptions.