- The European Union’s VAT in the Digital Age (ViDA) reform aims to modernize VAT compliance by introducing digital reporting and e-invoicing, shifting from periodic reporting to near real-time data exchange, enhancing efficiency and reducing VAT fraud.
- ViDA consists of three pillars: standardized digital reporting for faster access to transaction data by tax authorities, harmonization of e-invoicing to simplify cross-border transactions, and updates to VAT treatment for emerging business models, significantly impacting how B2B transactions are managed.
- Businesses must prepare for ViDA’s implementation through a comprehensive readiness plan involving gap assessments, solution planning, and phased rollouts, with a focus on integrating technology and collaborating across departments to ensure compliance and operational efficiency.
Source Melasoft
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