EU VAT Overhaul Set to Save Companies Billions, Official Says

An upcoming EU overhaul of value-added tax rules would make e-invoicing mandatory for some transactions and would ultimately save companies more than 40 billion euros ($41.7 billion), an official said Wednesday.

E-invoicing would become obligatory for transactions between companies in different EU countries, but not for transactions within one country, said Agustín Míguez Pérez, a policy officer in the European Commission’s tax directorate-general, speaking at a conference organized by Germany’s Institute for Digitalization in Tax Law.

Both buyers and sellers would be required to report data from transactions to their tax authorities, which would then file it to a ...