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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.

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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. As of November 2024, the commission has unanimously agreed upon the latest edition of the initiative. 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 current B2B and tax processes, as it, among other things, mandates the transition from PDF and paper-based manual processes to fully digital, XML-based transactions (true e-invoices). This system then makes it possible to conduct real-time reporting to respective EU tax authorities without interrupting operational flow. 

ViDA milestones

Starting upon final approval (likely in 2025)

Member States may mandate true e-invoicing (but not DRR) for domestic transactions, without the need to obtain the derogation (“permission”) from the EU.

Starting in 2030

Intra-Community e-invoicing and DRR will become mandatory for everyone. In addition, Member States are allowed to mandate DRR for domestic transactions.

By 2035

Harmonization across all Member States, where countries with pre-existing CTC models need to adapt to ViDA requirements. 

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 (e-invoicing and DRR) compliance is key to ensuring that your business remains agile and well-prepared for regulatory changes ahead.

Automate

Ensure your ViDA e-invoicing capabilities by digitalizing and automating your AR and AP processes with Pagero. 

Comply

Secure ViDA DRR compliance with no extra effort, as it is 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 DRR compliance

Compliance with DRR, CTC, B2G and Peppol is embedded and automated 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 in Europe and beyond through a single connection to our open network

A ViDA-ready provider

At Pagero, we have taken a proactive role in shaping the CTC compliance landscape. As part of this, we served as one of the lead architects of the Peppol CTC model, which has since been referred to as DCTCE or 5-corner model. We at Pagero have now concluded 2 successful ViDA pilots in conjunction with Nordic Smart Business & Government. Engaging the tax administrations of five Nordic countries, the pilot demonstrated how the 5-corner model ensures compliance with e-invoicing and DRR requirements for both intra-Community and domestic transactions under ViDA.

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: The current state of ViDA and what to expect next

This webinar provides an overview of ViDA and potential data flows, the latest provisions and timelines, and how existing e-invoicing, DRR, and CTC systems align with ViDA. Additionally, we discuss ViDA's compatibility with Peppol’s 4- and 5-corner models.

Stay ahead of the curve – visit our Regulatory Atlas

Discover the latest regulatory updates on e-invoicing, e-ordering, e-archiving, indirect tax requirements and ViDA developments across the European Union. Stay informed with our comprehensive insights and ensure your business remains compliant with evolving EU standards.

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.
  • Fulfill local requirements everywhere you do business
  • Increase efficiency and lower operating costs
  • Go digital for business resilience and growth

Get in touch

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