Mandatory Digital Invoicing: The Green Light from the E.U.

Greece is entering a new era of digitalization in business transactions, following the approval by the Council of the European Union for the implementation of mandatory digital invoicing for all business-to-business (B2B) transactions conducted within the country. The relevant Implementing Decision of the EU, published on March 13, 2025, gives the green light for this significant shift, granting a special derogation from Articles 218 and 232 of Directive 2006/112/EC on the common VAT system.

This means that from July 1, 2025, until December 31, 2027, businesses in Greece will be required to issue and receive invoices exclusively in electronic format. This initiative is part of a broader effort to combat tax evasion, simplify procedures, and modernize the tax system.

Why is digital invoicing important?

Digital invoicing (e-invoicing) is a system in which the issuance, sending, and receipt of invoices are carried out electronically through specialized platforms. The benefits of adopting it are numerous:

Combating Tax Evasion

One of the main reasons for the mandatory implementation of electronic invoicing is to reduce tax evasion and VAT fraud. By transmitting data directly to tax authorities, it becomes much harder for businesses to hide transactions.

Enhancing Transparency

Real-time access by tax authorities to transaction data increases transparency and facilitates more effective audits.

Environmental Benefits

Reducing the use of paper contributes to environmental protection.

Benefits for Businesses

Cost Reduction: For businesses, electronic invoicing leads to a significant reduction in administrative costs related to printing, sending, and storing physical invoices.

Faster Processes: Automation of the invoicing process speeds up payments, improves accounts receivable and payable management, and contributes to better cash flow.

Faster Collections: The immediate exchange of invoices can accelerate payments from clients.

Pre-filled VAT Returns: Proper data transmission to the myDATA platform will result in more accurate and pre-filled VAT declarations, further simplifying tax obligations.

 

Challenges and Adjustments for Businesses

Despite its benefits, the transition to mandatory electronic invoicing will present certain challenges for businesses, especially small and medium-sized enterprises (SMEs):

Initial Adaptation Costs: Adopting the necessary software and training staff may involve upfront expenses.

Technical Adjustments: Businesses must ensure their systems are compatible with e-invoicing platforms.

Need for Information: It is crucial for businesses to be informed in a timely and detailed manner about the new requirements and implementation deadlines.

What is the timeline for the implementation of electronic invoicing?

The EU decision sets out a specific timeline for the implementation and evaluation of the measure:

Start of Implementation: July 1, 2025 - This is when mandatory electronic invoicing for B2B transactions in Greece will begin.

End of Derogation Period: December 31, 2027 - This marks the end of the special exemption granted to Greece for mandatory e-invoicing.

Evaluation Report Deadline: March 31, 2027 - By this date, Greece must submit an evaluation report to the European Commission assessing:

• The effectiveness of the measure in combating tax fraud

• The level of business compliance

• The impact on administrative costs

If deemed necessary, Greece may request an extension of the measure beyond 2027.

EU Harmonization Clause: If a unified EU-wide electronic invoicing system is established before 2027, the Greek derogation will cease to apply, signaling a broader harmonization at the EU level.

The Green Light from the EU and the Next Steps

The approval from the European Commission was essential, as mandatory electronic invoicing requires a derogation from the general provisions of the EU VAT Directive. Greece, following the example of other European countries such as Italy, France, and Poland, aims to modernize its tax system and align with European best practices.

The next step for the Greek government is to establish the legislative framework and implement the necessary technical infrastructure. Businesses will be required to adapt to the new requirements, either by using private electronic invoicing service providers or, if fully developed, through the government’s own platform.

What Are the Next Steps for Businesses?

Mandatory electronic invoicing is now a reality, and with the EU's approval, it marks a necessary step toward the digital transformation of the Greek economy. The success of its implementation will depend on a smooth transition and the adequate support of businesses in adapting to the new digital requirements.

Businesses should begin their preparations by investing in appropriate software solutions that support electronic invoicing and ensure compatibility with the myDATA platform. Timely adaptation will ensure a seamless transition and allow businesses to fully benefit from digital transformation.

At our accounting firm, we understand the complexity of the new regulations and are here to provide comprehensive support for electronic invoicing. We offer one-on-one consultations via phone, Zoom calls, or email, in order to answer all your questions and deliver tailored solutions to meet your specific needs.