EU Business Wallet Proposal: Key Features and Impact Explained

On November 19, 2025, the European Commission published a proposal for Regulation on the establishment of European Business Wallets, to provide businesses, public sector organizations, and agencies with a secure, legally recognized digital identification. At its core, the EU Business Wallet enables reliable authentication and facilitates data exchange across B2B, B2G, and B2C transactions throughout the EU. 

Objectives and Impact of the Proposed Regulation

Essentially, the EU Business Wallet is part of a broader strategy to strengthen the single market, addressing the current disparities in digital tool adoption across the EU countries that hinder fair competition and disproportionately impact SMEs and micro-businesses. Therefore, the European Commission proposes a harmonized digital framework that should yield up to EUR 150 billion in annual savings for businesses.

The Regulations affect both public and private sector entities. Regarding the public sector, bodies, organizations, and agencies will be required to provide the wallet’s core functions when interacting with businesses. Businesses, on the other hand, will have an option, not an obligation, to use the wallet in dealings with public authorities and in their commercial operations.  

By enabling businesses to verify their identities, apply electronic signatures, seals, and timestamps in accordance with current eIDAS regulations, and exchange data digitally with full legal validity, the wallet should contribute to more effective, less burdensome administration.

Notably, the system could be used for due diligence, cross-border VAT registration, access to startup funding, supporting B2G interactions such as eProcurement, the submission and receipt of official documents, licensing, regulatory reporting, including ViDA VAT attestation and transaction data, and sustainability reporting.

Conclusion

While specific details on integration and access are yet to be provided by the European Commission, the proposal aims to streamline cross-border digital transactions and ensure fair competition for all businesses, regardless of their location within the EU. The proposal is currently under review by the European Parliament and the Council, and once approved, public administrations across the EU will have 2 years to implement it.

Source: European Commission