ViDA: Introducing VAT in the digital era
With the implementation of new regulations, companies are digitising their administrative and accounting processes. This is demonstrated, for example, by the emergence of electronic invoicing, which is gaining momentum. In this connection, the EU Commission is already working on a new initiative: ViDA: VAT presentation in the Digital Age. We tell you everything you need to know.
What is ViDA: VAT in the Digital Age?
ViDA stands for “VAT in Digital Age”. This initiative comes from the European Commission, who has published an action plan designed to adapt the current VAT legislative framework to the new digital economic reality. This proposal was published on 8 December 2022.
The idea behind this initiative is to digitise tax filing and is closely related to the new e-invoicing regulations between private companies. Here are some of the points to consider in order to understand what this initiative will look like:
- It is intended to create an EU-wide tax register. This will allow member states to share the necessary tax information on intra-EU transactions. The idea is that the exchange of invoices between countries will take place through the use of electronic invoicing, which will facilitate the recording of tax information by exchanging data electronically.
- Creation of a single central tax register. This will allow businesses in all member states to file their taxes in one place. It will also facilitate tax compliance for organisations.
Similar initiatives already exist in other countries. For example, in Spain, some companies are already required to file their taxes using TicketBAI or SII, and VeriFactu. In Italy, businesses are also required to file taxes when they want to send their invoices electronically (SDI).
The importance of VAT filing in the digital age
The implementation of ViDA has several advantages in relation to the exchange of electronic documents. Here are some of them:
- Standardisation of invoices, tax filing and other electronic documents. This facilitates trade exchanges between countries and business-to-business relations within the European Union. It increases efficiency and reduces errors in the exchange of electronic documents.
- Process automation. Companies can automate the exchange of electronic documents (e.g. electronic invoices), from their management systems or ERPs, thanks to the fact of digitising all these processes. In addition, business management is streamlined.
- Compliance with new regulations. Companies must comply with their tax obligations. This type of process facilitates compliance with laws, reducing the risks of not complying with obligations or doing so incorrectly.
- Cost reduction. Although in some cases (especially at the beginning), implementing these processes may involve an extra cost for companies, it has been shown that in the long term the digitisation of these types of processes means savings for companies.
Manage your electronic documents with B2Brouter
The best way to comply with the new regulations on e-invoicing, tax filing, etc. is to work with a specialised service provider.
B2Brouter is an e-invoicing solution that allows you to comply with the regulations in a simple and secure way. You can start preparing your company now by implementing e-invoicing.
If you want to get ready before the arrival of ViDA and other regulations, you can do it now with B2Brouter.Sign up for free and start invoicing now!