This lesson examines the global trend toward Digital Continuous Transactional Reporting (DCTR) and mandatory e-invoicing, which represent one of the most significant developments in tax administration digitalisation. It covers the rationale, design considerations, and implementation challenges.

  • The Rise of DCTR: Digital Continuous Transactional Reporting requires the (near) real-time reporting of invoices or transactional data to tax authorities, most often with the objective of strengthening VAT compliance and risk management. The rapid global expansion of DCTR regimes has taken place in a largely uncoordinated manner, leading to significant heterogeneity across jurisdictions and complex compliance challenges for businesses engaged in cross-border trade .

  • Strategic Approaches to DCTR: The OECD’s guidance on DCTR addresses six key areas for jurisdictions to consider :

    1. Strategic approaches to introducing DCTR

    2. Digital invoicing as the foundation of DCTR

    3. Measures to support business compliance

    4. Information security

    5. Interoperability

    6. Long-term sustainability

  • Global Adoption of E-Invoicing: Mandatory e-invoicing has become a dominant feature of tax administration globally, with many jurisdictions shifting from fragmented post-audit models to real-time clearance systems. Key developments in 2026 include :

    • Belgium and Croatia: mandatory B2B e-invoicing from January 2026 through Peppol networks

    • France: dual mandate for B2B e-invoicing and centralised e-reporting starting September 2026 for mid-to-large enterprises

    • Poland: KSeF clearance system mandatory for large taxpayers from February 2026, with full rollout expected by April

  • VAT in the Digital Age (ViDA): The EU’s ViDA package introduces mandatory e-invoicing and digital reporting requirements for intra-EU transactions effective July 2030. This will require e-invoices for intra-EU transactions to meet EU e-invoicing standards, with data on cross-border sales subject to a five-day digital reporting requirement. The mandate will be the first-of-its-kind interoperable system between jurisdictions .

  • Expansion to Non-Residents: Historically, e-invoicing and digital reporting mandates have applied to resident taxpayers. However, as VAT nexus rules have adapted to address the digital economy, some jurisdictions are expanding mandates to non-resident businesses. Examples include :

    • Taiwan: foreign suppliers of digital services selling to Taiwanese consumers must issue electronic government uniform invoices within 48 working hours of the transaction

    • Romania: foreign businesses registered for VAT must submit monthly SAF-T reports as of January 2025

    • Albania and Serbia: non-resident suppliers must comply with e-invoicing mandates and appoint fiscal representatives

  • Compliance Challenges for Businesses: The global shift toward e-invoicing presents significant compliance challenges for businesses operating across borders, including :

    • System upgrades to meet local e-invoicing requirements

    • Software investments and potential hiring of local tax experts

    • Navigating diverse regulations and country-specific standards

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