On 8 December 2022, the European Commission proposed several measures to modernize and improve the functionality of the EU VAT system. The abbreviation ViDA comes from the words VAT in the Digital Age.
In the co-Nordic experiment, the use of existing VAT data in a standard format online invoice, which is sent via the Peppol network for reporting and quality control, is investigated. This aims to clarify and ensure the correct use of VAT codes and rates in transactions, in order to improve the quality of both cross-border and domestic VAT codes and rates.
The work is based on Peppol network standards and transactions between all Nordic countries.
The purpose of the experiment is to verify the European Commission’s one-time principle, where VAT registration in any EU country would simultaneously cover the entire EU area and reporting would be handled through one portal for all countries.
The experiment aims to ensure that:
- The same information that is sent on the seller’s invoice can be reused to report VAT to the national tax authority
- The same information provided on the buyer’s invoice can be used again to report VAT to the national tax authority
- The tax authority can use the information to reduce the incorrect use of VAT by national SMEs with the help of information based on UNSPSC classification and analyzes of VAT codes and rates.
NSG&B’s news about the ViDA experiment