Spurred by the success of the first pilot, under the auspices of Nordic Smart Government & Business, we will in this pilot, helmed by OpenPeppol, contribute towards demonstrating that the Peppol e-Invoice specifications and the Peppol Network can be used to meet the expectation of all parties impacted by the Digital Reporting Requirements (DRR) of the ViDA legislative proposal and the ensuing e-Invoicing mandates that have been announced or are expected by most European countries.
The project has been running through 2025 and will continue 2026.
What is ViDA?
VAT in the Digital Age is an EU Commission initiative towards a legislative proposal, aiming to modernize the European VAT-system, especially combatting VAT-fraud. The proposal reached political agreement on November 5th, 2024 in ECOFIN (Economic and Financial Affairs Council), consisting of the economic and finance ministers from all member states. The focus of ViDA is intra-community trade, i.e. trading flows between EU countries.
"ViDA’s approach to the modernization of VAT-reporting is to tie the reporting of VAT close to the e-Invoice and the moment of its issuance, requiring, when the invoice is sent, that invoice data extracted directly “off the back” of the e-Invoice is reported to the Tax Authority at the same time. This is sometimes referred to as “CTC” (Continuous Transaction Controls)", emphasizes Sven Norin, Product Manager at Tieto.
How does Peppol aim to support ViDA?
Peppol has succeeded in creating a spontaneous any-to-any infrastructure, where, if you can find your trading partner in Peppol’s directory, you are guaranteed that the invoice will reach its recipient – given that you have produced a technically correct invoice.
This works according to the so called “4 corner model” that we also see outside of Peppol, but within the Peppol ecosystem all certified Service Providers are obliged to carry traffic from any other certified Service Provider, without the need for bilateral interoperability agreements.
Therefore, in the well-functioning Peppol 4-corner landscape, it is straightforward to insert the Tax Authority in the flow, as a “5th corner”. The trading parties continue to exchange e-Invoices like before, but after the sender C1 submits an e-Invoice to its Service Provider C2, a copy or an extract of the invoice is passed from C2 to C5 the Tax Authority in the same moment as the invoice is being transported to C3 the Recipient’s Service Provider and onwards to C4 the final Recipient.
How is our Peppol ViDA piloting helping you?
"By investing efforts in the Peppol ViDA pilot, co-operating with peer Service Providers, Government Agencies and other stakeholders, we hope to contribute to a broadening appreciation for Peppol as the best choice for EU-wide Buyer/Seller-collaboration, with the Tax Authority “listening in” in an unobtrusive way", says Sven Norin, Product Manager at Tieto.
Not formally part of ViDA, but already present today in some countries, are local e-Invoice mandates and DRR. Tietoevry is working systematically at enabling you to have compliant connectivity in these markets.
Additionally, we continue to participate in forums and trade associations such as TIEKE, NEA, GENA etc., to enable you to take part of the increasing value of the digitized network economy, while at the same time protecting you from its complexity.
At Tieto BIX, we're committed to supporting our customers with consulting around ViDA, helping you transition to e-Invoicing and adapt to new regulations. Contact us for assistance or any suggestions, concludes Sven Norin.
