XBRL (eXtensible Business Reporting Language) is not new: but in 2025 and beyond, it is more important than ever. Across Europe and worldwide, regulators are moving towards digital-first compliance, making XBRL the standard for financial, sustainability, insurance, and even VAT reporting.
In this article, we’ll explain what XBRL is, why it matters, the latest regulatory updates, and what businesses should prepare for.
What is XBRL?
XBRL is a global standard for exchanging structured business information. Instead of sending unstructured PDFs, XBRL allows financial, sustainability, and tax data to be reported in a machine-readable format. This means:
- 📊 More transparency → regulators and stakeholders get consistent, comparable data.
- ⚡ Higher efficiency → reports can be validated automatically, reducing errors.
- ✅ Regulatory compliance → filing in XBRL is increasingly not optional, but required.
Who needs to use XBRL?
- Listed companies reporting under IFRS/ESEF.
- Large enterprises filing under CSRD/ESRS (sustainability).
- Financial institutions under Solvency II and other sectoral regulations.
- SMEs and service providers who must align with local tax/VAT reporting.
- Auditors and regulators who rely on structured data for oversight.
In short: if your business reports to regulators, XBRL applies to you.
Key XBRL Updates (2024–2026)
Regulators in Europe are stepping up requirements to ensure greater transparency and stronger controls:
- 2024–2025 | Financial Reporting (ESEF/IFRS) → EU-listed companies must prepare annual reports in XBRL using the latest taxonomies. Stricter enforcement starts in 2026.
- 2025 | Sustainability Reporting (CSRD/ESRS) → Large companies begin submitting sustainability data in XBRL as part of the EU Corporate Sustainability Reporting Directive.
- 2025–2026 | Insurance & Pensions (Solvency II) → Insurers and pension providers face new requirements for more frequent and detailed XBRL filings.
- 2026 | Governance & VAT Reporting (ViDA, UK reforms) → The EU’s VAT in the Digital Age and UK filing reforms introduce real-time, digital-first submissions.
👉 From 2024 to 2026, XBRL shifts from an accounting tool to a compliance backbone across multiple sectors.
Why XBRL still matters for the future
Even as new technologies emerge, XBRL remains essential because it:
- 🔗 Connects finance, sustainability, and tax reporting into one ecosystem.
- 🌍 Supports global comparability, crucial for cross-border businesses.
- 📈 Enables automation, AI, and analytics in compliance and audit processes.
- 🛡️ Ensures data integrity in a world of stricter regulation.
How Semansys can help
We’ve been helping companies navigate digital reporting for over 25 years. From the first XBRL filings to today’s complex mix of financial, sustainability, and tax requirements, we’ve seen the landscape evolve — and we know how to make it manageable.
Our focus is simple:
- ✅ Trusted experience with regulators and businesses across Europe
- ✅ Scalable technology that adapts to changing standards
- ✅ Support that grows with you — whether you’re an SME or a multinational
In a time where regulations change fast, we ensure your reporting is not only compliant but also efficient and future-proof.
💡 Curious how this applies to your business? Schedule a call with our team — we’d be glad to share insights tailored to your needs.
