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      On 9 June 2026, the Council of the European Union adopted its negotiating position on creating the European business wallet, a digital tool to simplify and secure cross-border business interactions across the European single market.1 The initiative will enable companies verify identities, exchange trusted documents, and carry out legally valid digital actions (such as signing and delegating authority) with businesses and public administrations in any member state.

      The aim is to cut red tape, enhance cybersecurity, and support a more competitive and integrated EU digital economy.

      The next step is for negotiations to start with the European Parliament under the ordinary legislative procedure, including the so-called trilogues involving Council, Parliament, and Commission.  Once both Parliament and Council formally approve that common text, the regulation can be adopted and then implemented in member states according to the timelines it sets. 

      WHY THIS MATTERS

      European business wallets could fundamentally change how companies operate across the EU by replacing fragmented, paper- or email-based, country-specific processes with a single, secure digital identity and document system.

      For businesses active in multiple member states, this means faster onboarding with partners and authorities, and fewer legal uncertainties when proving identity, licenses, or mandates abroad. The benefits will also extend to day-to-day interactions with public authorities and other businesses, including the execution of compliance obligations, such as tax and social security registrations and filings through trusted, standardised digital channels.

      For companies planning expansion or already active in multiple EU member states, understanding the emerging framework early will help them anticipate compliance impacts, exploit efficiency gains, and influence how national and sector‑specific implementations are shaped through industry feedback and associations. 

      Background on the European Business Wallet – its operativity and use

      The proposal for a regulation on the establishment of European business wallets creates a dedicated “digital business wallet” for companies and other economic operators across the EU. It builds directly on the European digital identity (EUDI) framework under electronic identification, authentication and trust services (eIDAS),2 but is tailored to business needs rather than individuals.

      What is the digital business wallet?

      The European business wallet3 is defined as a secure digital solution that allows an economic operator (or a public body acting as a “business owner,” e.g., a social security institution, tax authority) to:

      Receive, store and manage:

      • “European Business Wallet owner identification data” (a verified digital identity of the business)

      • Electronic attestations of attributes (e.g., VAT number, economic operators registration and identification (EORI) and legal entity identifier (LEI), A1 certificates data, licences, permits, company registration data)

      Use trust services in business processes:

      • Electronic signatures and seals (including qualified)

      • Qualified electronic time stamps

      • Qualified electronic registered delivery (QERDS)4 as a secure legal communication channel

      Manage representation and roles:

      • Technically delegate access and rights to “European Business Wallet users” (employees, authorised representatives, external service providers) via a role‑ and authorisation‑based system.

      The wallet is not just a file repository; it is a regulated trust framework with legal effect (principle of equivalence) when used to identify, sign, submit documents, and send/receive notifications.

      Use cases and practical use

      The digital business wallet is intended for both business-to-government (B2G) and business-to-business (B2B) interactions, with a strong focus on standardised, secure cross‑border procedures.

      On the B2G side, public authorities will, within set timelines and once implementing acts are adopted, be required to accept the wallet for identification and authentication, signing and sealing, document submission, and sending or receiving notifications.

      To do this they must either use a wallet themselves (for example, via the integrated qualified electronic registered delivery service – QERDS) or, at minimum, be listed with a unique identifier and digital address in the European Digital Directory5 so that businesses can reach them. Existing legal and procedural requirements still apply where the wallet cannot technically fulfil a step, but authorities may not reject the wallet simply because it is a digital channel.

      A particularly relevant example is posting of workers and A1 certificates. Recital (22) of the proposed legislation for the digital wallet6 explicitly states that the European business wallet can be used for submitting A1 certificates concerning posted workers.

      In practice, this allows a company to retrieve A1‑related data from registers or the “Once Only Technical System,” store it as attestations in the wallet, and then use the wallet to submit this evidence to foreign social security institutions or labour inspectorates, as well as to receive follow‑up notifications via QERDS.

      This enables a standardised, cross‑border process for handling A1 documentation and supports regular, structured monitoring of posting‑of‑workers compliance.

      KPMG INSIGHTS

      This initiative is still at an early stage in the legislative process. The Council has only just agreed to its position, there is no final text and no fixed implementation timeline; trilogue negotiations with the European Parliament and the Commission will take time, and the subsequent rollout will be gradual.

      At the same time, the initiative fits into a broader and accelerating trend: the digitisation of business processes and the secure storage, exchange, and protection of information. European public authorities are increasingly moving to digital‑first channels, and companies that rely on paper‑based documentation or fragmented systems will find it more difficult to interact efficiently, demonstrate compliance, and safeguard sensitive data.

      Investing in robust digital workflows, interoperable data models and strong security and governance frameworks is therefore becoming a prerequisite for resilient operations and regulatory readiness, rather than a “nice to have.”

      The draft regulation itself anticipates that implementation will not be simultaneous for all actors: the technical standards will come first, then wallet providers, and only later full uptake by public authorities and, in practice, by businesses. A business wallet infrastructure could already start to emerge in the near term, with pilots and early offerings appearing as soon as the technical framework is clarified.

      A wallet for individuals could realistically become available on the market already as early as 2027.7

      The current proposal for a digital business wallet offers a clear snapshot of the direction of travel. It illustrates how the EU envisages future digital interactions between businesses and public bodies, including for social security and posting of workers, and signals a broader move towards harmonised, wallet‑based solutions across mobility and corporate services.

      For organisations planning their digital, data and compliance architectures, it is therefore worth already taking note of the underlying concepts and likely impact, confirming that internal systems are progressively digitised and that information is stored, exchanged, and protected in a way that can integrate with wallet‑based solutions once they become more widely available.

      ENDNOTES:

      1 Council of the European Union: European business wallets: Council adopts negotiating position, 9 June 2026.

      2 European Commission: European Digital Identity (EUDI) Regulation, 29 October 2025. EUDI framework is the EU’s unified approach to secure interoperable digital identity, built on top of the eIDAS regulation (Regulation 910/2014) and now extended by eIDAS 2.0 (Regulation 2024/1182). eIDAS provides the legal and technical foundation for electronic identification, authentication, and trust services across the EU.

      3 Council of the European Union: Proposal for Regulation of the European Parliament and the Council on the establishment of European Business Wallets – General approach, 22 May 2026.

      4 European Commission: Upcoming adoption of Qualified Electronic Registered Delivery Service implementing act, 14 September 2025. The Qualified Electronic Registered Delivery Service (QERDS) implementing act sets the rules for secure, official digital mail. It prevents messages from being faked or changed. It gives digital letters the same legal power as traditional paper registered mail. Businesses that operate in Europe or trade with EU countries, this system will impact how they send contracts, invoices, and notices.

      5 European Commission: EU Interoperability Solutions Catalogue, June 2026. The European Digital Directory is a solution listed in the Interoperable Europe portal, designed to help users find, connect with, and manage digital services, products, and solutions across Europe. It is part of the EU’s broader interoperability and open-source initiatives, aiming to improve access to digital resources and support cross-border collaboration.

      6 Council of the European Union: Proposal for Regulation of the European Parliament and the Council on the establishment of European Business Wallets – General approach, 22 May 2026.

      7 European Commission: A digital ID and personal digital wallet for EU citizens, residents and businesses, June 2026. 

      Contacts

      Daida Hadzic
      Daida Hadzic

      Director, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

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