The exchange of information between transmission system operators (TSOs) and distribution system operators (DSOs) is a common practice. However, the evolution of the regulatory frameworks in Europe has increased the need for enhancing TSO-DSO data exchange and interoperability. This paper provides an overview of the TSO-DSO data exchanges and demonstrates the best practices using International Electrotechnical Commission (IEC) common information model (CIM), including the implementation of IEC common grid model exchange standard (CGMES), and discussion of the corresponding advantages, disadvantages, and challenges. Furthermore, this paper evaluates and reports the activities already carried out within European projects, with particular focus on TSO-DSO interoperability. Finally, this paper concludes the need for TSOs and DSOs to rely on standard-based solutions when performing TSO-DSO data exchange, which enables the efficient operation and development of the future power systems.