The Netherlands is planning to introduce mandatory e-invoicing and digital transaction reporting as part of its implementation of the EU VAT ViDA reform. As part of that process, on September 11, the Cabinet proposed extending the digital VAT requirements beyond the EU-mandated rules for cross-border transactions and applying similar requirements to the domestic market. The Cabinet's announcement is another significant step in the Netherlands' ViDA e-invoicing efforts.
Proposed E-invoicing and Digital Reporting Requirements
From July 1, 2030, Dutch businesses must issue structured e-invoices for domestic B2B transactions. Additionally, from July 1, 2031, this will be followed by a digital reporting obligation requiring information on domestic transactions to be submitted to the Dutch Tax and Customs Administration.
Businesses participating in the Dutch Small Business Scheme (KOR) will be excluded from these requirements. The exemption applies to businesses with annual turnover of up to EUR 20,000 and will remain in place after July 2030. For businesses that already need to digitalise their invoicing systems for international transactions under ViDA, extending the requirements to domestic transactions could ultimately simplify administration because the same digital processes can be used for both.
The government says the broader approach is intended to support digitalisation, reduce administrative burdens, and give the Tax and Customs Administration better tools to detect VAT risks and improve enforcement. At the same time, it stresses that secure data management and protection of commercially sensitive information will be essential.
Future Implementation Steps
Based on the proposal, the Netherlands aims to use the ViDA reforms as a basis for moving toward a fully digital VAT administration, first for EU cross-border transactions and subsequently for domestic B2B transactions. Nevertheless, the Dutch government will continue working on the details of the proposed e-invoicing and digital reporting system before the legislation is finalised.
A draft bill is expected to be released for online consultation in the autumn of 2026, allowing businesses and other stakeholders to provide feedback. Following the consultation, the Cabinet plans to submit the legislation to the Dutch House of Representatives before the summer of 2027.
