The European Union recently approved the “VAT in the Digital Age” (ViDA) bill, aimed at modernizing the VAT system within member states. Part of ViDA is the introduction of real-time digital reporting and e-invoicing for cross-border business-to-business (B2B) transactions.
Complying with ViDA requirements using Peppol
The goal of ViDA is to increase transparency and reduce intra-Community VAT fraud. The Peppol-network provides a standardized framework for the electronic exchange of procurement documents, including invoices. By using the existing Peppol infrastructure, companies can comply with ViDA requirements for structured e-invoicing and digital reporting.
Important features of the Peppol network in relation to ViDA are as follows:
- Standardization: Peppol uses standardized formats and protocols for e-invoicing, ensuring consistency and interoperability between different systems and jurisdictions.
- Security: The Peppol network uses secure channels for document exchange, protecting sensitive financial information during transfer.
- Interoperability: Peppol facilitates communication between various stakeholders, including companies, public organizations, and tax authorities, supporting efficient data exchange.
The Dutch government chooses Peppol
Since October 2020, the Dutch government has been acting as a Peppol authority. Although the use of Peppol for B2B transactions is not mandatory, the national government itself has opted for Peppol for digital business transactions. In addition, e-invoicing between the national government and its suppliers is now mandatory, and a growing number of companies are also using Peppol.
To further explore the integration of Peppol with ViDA's objectives, OpenPeppol has launched a pilot project involving Peppol authorities, tax authorities, and companies across Europe. The aim of this pilot is to demonstrate how Peppol's infrastructure can meet ViDA's e-invoicing and e-reporting requirements, thereby ensuring compliance and efficiency.
Opportunities for organizations to adapt to ViDA regulations
For Dutch companies and public entities, using the Peppol network offers an opportunity to adapt to the upcoming ViDA regulations. By adopting Peppol's standardized e-invoicing framework, organizations can comply with the new VAT reporting requirements, improve operational efficiency, and contribute to a more transparent and secure VAT system within the EU.
Read more about the benefits of Peppol for your organization.