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Nordic testing of VAT in the Digital Age (ViDA) measures

The VAT in the Digital Age (ViDA) proposal, and its associated Digital Reporting Requirements (DRRs), is instigating a significant passageway into a new era for e-invoicing and e-reporting. The corollary of this is that testing and pilots to facilitate a smooth transition are not only welcome but a necessary step in the progress of these reforms.

To this effect, the Nordic countries, comprising of Denmark, Finland, Iceland, Norway and Sweden’s tax authorities, are collaborating on a project which effects the exchange of data, based on the UBL 2.1 data format and Peppol exchange. The project aims to identify challenges associated with the ViDA proposal, specifically, the cross-border reporting obligations, which form a central part of the proposals.

This pilot is expected to conclude in the next few weeks, with several countries, including Germany, the Netherlands and Belgium following developments. Interestingly, the United Kingdom is also following developments, despite not being subject to ViDA proposals.

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