The tax authorities of Denmark, Finland, Iceland, Norway, and Sweden have successfully completed the second phase of their pilot technical trial under the EU ViDA Digital Reporting Requirements proposal. This initiative, known as the Nordic Smart Government and Business (NSG&B) coalition, involves collaboration with various businesses and e-invoicing companies to enhance VAT invoice data exchange.
Objectives and Achievements of Phase 2
The primary goal of this phase was to understand and address technical challenges associated with the European Commission’s ViDA proposal. Specifically, the pilot focused on testing the transmission of data over the Peppol Network using Peppol BIS specifications. This involved:
- Testing New Transactions: The 2024 phase introduced new transactions, primarily focusing on credit notes that comply with ViDA information requirements. These transactions were exchanged between tax authorities and third-party e-invoicing agents.
- Validating Original Transactions: Continuation of testing the original transactions from Phase 1 for domestic transactions to ensure consistency and reliability.
Overview of Phase 1
The initial phase in 2023 set the groundwork by:
- Submitting and Receiving Structured E-Invoices: Using the EN 16931 standard for invoices, based on the UBL 2.1 data format, and facilitating a Peppol 5-corner exchange.
- Managing ViDA Messaging: Including reconciliation processes between e-invoices and messaging, and incorporating the use of certified e-invoicing providers.
Technical Challenges and Future Implementation
The NSG&B pilot aims to identify and resolve technical challenges in cross-border transaction reporting. Initially slated for a 2028 launch, the implementation of a Peppol-based Continuous Transaction Control model is now expected around 2030 or later.
Broader Implications and Interest
This pilot has garnered attention from other European countries, including the Netherlands, Germany, Belgium, and the UK, all of which are keen to participate in future phases. The collaborative efforts in the Nordics serve as a benchmark for the successful adoption and implementation of digital reporting requirements across Europe.
By addressing the technical challenges and refining the processes involved in e-invoicing, the NSG&B coalition is paving the way for a more efficient and streamlined approach to VAT compliance and reporting. This not only enhances transparency and reduces tax evasion but also fosters a more interconnected and efficient digital economy in the region.
