Pagero completes ViDA pilot, Phase 2

As previously reported, Pagero participated in a ViDA pilot organized by the Nordic Smart Government & Business ("NSGB"), which included tax administrations from all five Nordic countries: Denmark, Finland, Iceland, Norway, and Sweden. The aim was, among others, to prove the viability of Peppol CTC (5-corner or DCTCE) in the context of the upcoming introduction of ViDA (VAT in the Digital Age). 

In light of the success of the initial pilot, the participating tax administrations requested the extension of the pilot with additional business cases and scenarios (Phase 2) to better assess available technical specifications and frameworks. This Phase 2 was successfully conducted at the end of April 2024. 

Besides following the requirements outlined in the initial pilot, Phase 2 included, among others, demonstrations of compliance with the following mandatory and optional aspects of ViDA: 

Cross-border (intra-Community, Export, and Import) scenario: 

• Real-time issuance, exchange, and reception of EN-compliant credit notes, based on Peppol BIS specifications over the Peppol Network, 
• Real-time validation of issued and received credit notes according to established VAT requirements plus certain new ViDA content requirements, 
• Real-time creation and communication to the respective tax administration of the “ViDA message: credit note,” where such a message is: 
  • An EN-compliant subset of the issued and received credit note that fulfills the content requirements established by ViDA, 
  • Generated automatically by a certified provider, without any additional work by or burden on the end-user, and 
  • Provided to the respective tax administration of each end-user in near real-time. 

Domestic scenario: 

• As ViDA envisages the option of making e-invoicing and DRR mandatory for domestic transactions (invoices between taxpayers established in the same jurisdiction), it was decided to prove the viability of the model for this option. This part of the pilot followed the same scope, steps, and principles as the cross-border testing. Both invoices and credit notes were in scope. 
• This part of the pilot was conducted jointly with the tax administrations from Denmark, Norway, and Sweden. 

Applicable to both scenarios: 

• Use of harmonized VAT codes, as advised by the participating tax administrations, and 

• Use of UNSPSC codes to classify in a unified manner supplied goods and rendered services. 

Besides participating as a service provider acting on behalf of taxable persons, Pagero has also acted as a ViDA message management platform for one of the participating tax administrations. 

"Conducting this extended pilot scope – especially by including the domestic scenario – is very timely, as ViDA is likely to soon be approved. Besides Singapore, the UAE recently announced that they will be implementing the 5-corner model. The market should rest assured that Pagero delivers on what we promise – staying ahead of e-invoicing and CTC developments," says Nazar Paradivskyy, VP of Regulatory Affairs at Pagero. 

Pagero remains committed to playing a leading role in driving the adoption of digital solutions and shaping the future of indirect tax processes in the Nordics and globally.