VAT in the Digital Age (ViDA)
Understand the essence of Europe’s ViDA reform and how Pagero can help you prepare for changes ahead of time.
Propelling Europe in a digitalized direction
In December 2022, the European Commission unveiled an initiative called VAT in the Digital Age (ViDA), which aims to overhaul and modernize VAT management throughout the European Union. ViDA proposes to usher businesses into an era of fully digital interactions, laying a foundation for further innovations. This initiative marks a significant departure from the B2B processes we see today, as it mandates the transition from PDF and paper-based invoices to fully digital, XML-based transactions (true e-invoices) using service providers like Pagero. This system then makes it possible to conduct real-time reporting to respective EU tax authorities without interrupting operational flow.
ViDA milestones
Phase 1
Introduction of true e-invoicing, wherein XML-based exchanges become mandatory for intra-Community transactions and a norm for domestic, effectively ending the PDF era.
Phase 2
Implementation of Digital Reporting Requirements (DRR) where businesses will be required to report a subset of intra-Community sales and purchase invoices in near real-time.
Phase 3
Harmonization across all Member States, where countries with pre-existing CTC models need to adhere to ViDA requirements.
A hands-on guide: How to prepare your business for ViDA
Under ViDA, paper and PDF will cease to function as valid documents for tax reporting. What are the steps your business should take to transition to this new reality? Read our practical guide to learn how to prepare for the changes ViDA brings.
Navigate ViDA strategically with Pagero
While one central focus of ViDA is reducing VAT non-compliance, another central area is digitalization and the future-proofing of EU businesses. This is likely to disrupt some technologies businesses are acquainted with today. Businesses that are currently leveraging OCR, EDI, procurement platforms or pure tax technology will need to evaluate their current processes and begin the transition to a world where e-invoicing is mandatory. Choosing an open network provider adept in both business automation and CTC compliance is key to ensuring that your business remains agile and well-prepared for regulatory changes ahead.
Automate
Ensure ViDA Phase 1 requirements by digitizing and automating your AR and AP processes with Pagero.
Comply
Secure ViDA Phase 2 compliance with no extra effort, as DRR are embedded within our AR and AP solutions.
Expand
Leverage your ViDA investment to benefit from seamless compliance with regulations far beyond Europe.
The advantages of using Pagero to comply with ViDA
Proven ViDA-ready
We have conducted several pilot projects and tests with external parties to demonstrate the ViDA-readiness of our platform
Embedded compliance
Compliance with B2G and CTC requirements, as well as Peppol standards, comes embedded in our business solutions
AR and AP expertise
We help you automate purchase-to-pay and order-to-cash processes in a compliant manner, minimizing manual work and human errors
Open & interoperable
Reach millions of businesses and dozens of tax administrations through a single connection to our open network
A ViDA-ready provider
Dig deeper into VAT in the Digital Age
Blog: What is ViDA? VAT in the Digital Age Q&A
In this article, we provide an overview of the VAT in the Digital Age initiative and answer common questions. Learn more about why ViDA came to pass and what it means for companies that do business in the European Union.
On-demand webinar: AP in a ViDA world
In this webinar, we discuss the significant impact ViDA will have on Accounts Payable (AP) and how you can best prepare your business to avoid last-minute surprises.
On-demand webinar: ViDA updates and forecast
Get up to speed with the latest information about the ViDA initiative, the projections for the future and proactive steps you can take to prepare for upcoming requirements.
Prepare your business for VAT in the Digital Age
We help you stay on the right side of the latest directives with e-invoicing and automation solutions that help you become and remain compliant.
- Fulfil local requirements everywhere you do business
- Increase efficiency and lower operating costs
- Go digital for business resilience and growth
