How global businesses should prepare for ViDA and rise of e-invoicing

Podcast host Susannah Streeter welcomes Pierre M Arman, Tax, Partner, EY Consulting LLC, Deirdre Hogan, Tax, Partner, at Ernst & Young - Business Advisors and Ben Woodfield, UK&I Indirect Tax Partner, Ernst & Young LLP, to dive deep into the rise of e-invoicing and what it will mean for global business operations.

What will the VAT in the Digital Age proposal (ViDA) mean for companies in Europe and worldwide? These proposals published by the European Commission in late 2022 aim to modernize the VAT system.

The proposals include e-invoicing and digital reporting, the single VAT return for trading across the EU, taking into account the growing platform economy – which businesses use to facilitate exchanges.

One of the significant benefits of ViDA is its shift to digital, which should facilitate a more efficient, transparent, and accurate approach to VAT management.

With an increasing number of member states implementing different digital reporting models, there is a need for harmonization at the EU level – and it is anticipated that ViDA will prevent errors, detect fraud, and improve risk management.

In this episode, we address the key questions facing businesses, such as what steps should companies be taking now to get prepared? What strategic opportunities could ViDA open up, and what role will the tax function have, given it will have business-wide implications?

Key takeaways:

•  Timely preparation for the new changes proposed by ViDA is crucial. Delays can lead to complications, emphasizing the importance of planning well in advance, especially in the assessment phase.
•  The shift to digital reporting and e-invoicing offers an opportunity for companies to optimize their operations, particularly in tax compliance and risk management. Viewing these changes as an opportunity rather than a burden can yield long-term benefits.
• Addressing the integrity and accuracy of data is vital, especially when it comes to real-time reporting. Understanding the detailed process and engaging with stakeholders are key steps for ViDA preparation.

For your convenience, full text transcript of this podcast is also available. Read the transcript.