How SAP helps you with the new VAT in the Digital Age (VIDA) system

What specifically changes with VIDA?

One of the central aspects of VIDA is the introduction of mandatory electronic invoicing for cross-border operations between Member States and the creation of a real-time reporting system based on electronic invoice data. This means that companies will need to gradually abandon manual processes and adopt digital solutions for issuing, receiving, and archiving invoices. Additionally, VIDA introduces new rules for digital platforms and a single VAT registry at the European level.

In this context of VAT digital transformation, SAP solutions represent a fundamental strategic ally for companies. Thanks to their modular architecture and ability to integrate and update with local and international regulations, SAP systems offer a range of functionalities capable of fully supporting the new VIDA requirements. From electronic invoicing management to real-time reporting, through automation of tax processes, SAP provides the necessary tools for a smooth and compliant transition.

SAP S/4HANA and BTP: the core of your compliance

In particular, the standard functionalities of SAP S/4HANA already offer a solid starting point to address the challenges of VIDA. The modules dedicated to financial management (FI) and sales and distribution (SD) allow you to natively manage electronic invoicing flows in the required formats (such as the European standard EN 16931). Furthermore, SAP Business Technology Platform (BTP) solutions offer the flexibility needed to extend standard functionalities and integrate with external systems or specific platforms required by local regulations.

Beyond the Standard: customization based on real needs

For companies that need more advanced functionalities or specific adaptations to their processes, SAP offers an ecosystem of complementary and vertical solutions. For example, SAP Document and Reporting Compliance (DRC) is a powerful solution for centralized management of electronic documents and tax compliance at a global level, including the real-time reporting required by VIDA. Additionally, our team of consultants can help companies throughout the entire process: from software selection to implementation and configuration of the most suitable SAP solutions for their specific needs, in short timeframes ranging from four to sixteen weeks.

Support from SAP and Ccelera

In conclusion, the entry into force of the European VIDA system represents a crucial milestone for VAT management at the community level. Companies that prepare in time by adopting robust and flexible digital solutions like those offered by SAP will not only ensure regulatory compliance but also optimize their tax processes and reduce the risk of errors and penalties.