Webinar Insights: Stay Ahead - Global Invoice Compliance Update and the Impact of ViDA

• Timeline: ViDA was in principle agreed upon in March 2023, with implementation targeted for 2025.
• Objective: To modernize and harmonize VAT processes, stem VAT fraud, improve tax collection, and simplify intra-community (EU) business operations.

The directive revolves around three key pillars:

1. Single VAT Registration: This new framework, which is an extension of the One Stop Shop system (OSS), significantly reduces the administrative burden of managing multiple VAT registrations across EU nations, enabling businesses to save both time and costs. “If you are doing business in multiple countries in Europe, you will have to have multiple VAT registrations in these countries, which is costly, and time consuming.”
2. Platform Economy: ViDA clarifies VAT liability in platform-based transactions, particularly within hospitality and transportation industries. It aims to create transparency around which entities—platforms, agents, or end users—are responsible for VAT payments. “It wasn’t entirely clear who’s liable to pay VAT in a platform environment… that has been clarified in the ViDA directive.”
3. Digital Reporting Requirements: These standardized electronic invoicing mandates will harmonize reporting rules and streamline business processes.

The Global Push for Electronic Invoicing

Ruud explored the inevitable global shift toward mandatory electronic invoicing, with predictions for widespread adoption by 2030:

“By 2030… the majority, if not all countries in the world, will have adopted a clearance or some sort of a CTC model. It’s described as ‘an unstoppable, unavoidable development.”

This trend brings several advantages and challenges:

• Opportunities: Faster transactions, pre-filled tax returns, and real-time fraud detection mechanisms.
• Challenges: Governments now see every invoice—in many cases before it’s delivered to the buyer—which could trigger immediate audits based on suspicious activity. Ruud highlighted the diversity in how countries approach compliance, arguing that businesses must adapt to each nation’s unique mandates:

“No two countries implement exactly the same mandate… They’re always different enough to be completely different projects.”

Country-Specific Examples

To illustrate the complexity of this compliance environment, Ruud provided country-specific insights: /p>

1. Poland: Poland differs from other EU countries with its unique use of the FA(3) XML-based invoice; mandatory KSEF platform submissions, and complex rules surrounding offline invoicing and QR codes. Note that the FA(3) is not based on the European Norm, but on SAF-T reporting. Businesses need to stay vigilant in Poland’s volatile regulatory environment. “It’s never a stable static environment. It’s always extremely, I would say, volatile.”
2. UAE: Though based on PEPPOL, UAE’s model extends far beyond the traditional framework, with companies required to use the same provider for both inbound and outbound invoices. All VAT-registered entities, including those handling cross-border transactions, are bound by the reporting requirement. “You can only use one provider for both inbound and outbound transactions… That is very different.”
3. Germany:By 2028, Germany will move to mandatory electronic reporting, requiring both suppliers and buyers to report invoice data into government platforms. The evolution from older methods, like email, reflects Germany’s effort to align with broader European norms.
   “It’s painfully inadequate to just use email, but we are where we are in Germany.”
4. Brazil: As one of the most complex VAT jurisdictions globally, Brazil implements numerous invoice types, shifting tax burdens, and rigorous validation rules. Businesses face challenges ranging from fragmented reporting structures to a slew of new reportable events in 2026. “If you haven’t started yet… you really have to.”

Tungsten Automation: Simplifying Compliance

To navigate these regulatory complexities, Tungsten Automation offers its InvoiceAgility platform, which Ruud described as a powerful intermediary for businesses of all sizes:

“It has one characteristic… that is absolutely key, and that is simply the ability to receive and send any invoice in any format, regardless of where it needs to go to or where it comes from.”

InvoiceAgility provides flexibility to handle diverse invoice formats—PDFs, paper, e-invoices, government platforms, and even email—making it “completely future-proof.” The platform bridges compliance requirements with operational efficiency, recognizing that what satisfies a government’s standards may not align with a business’s needs.

Finding Strength in Partnerships

Complementing Tungsten’s offerings is its partnership with Sovos, a tax automation company. Ruud emphasized the marriage of compliance and efficiency, resulting in coverage across 140+ countries.

“Together with our partner, Sovos… we achieve a very broad, very strong compliance footprint in about 140+ countries.”

Conclusions

The key message was clear: while compliance may be mandatory, it can also be leveraged as a foundation for innovation and improved operational efficiency.

By understanding trends like ViDA, adapting to country-specific requirements, and employing versatile technologies like InvoiceAgility, businesses can not only survive the regulatory shifts but thrive in the modernizing global market.

If your business is preparing for these changes, now is the time to act. The transition is unstoppable—but with the right strategies and tools, you can stay ahead of the curve.

Watch the full on-demand webinar or talk to one of our invoice automation experts to ensure that you stay ahead of compliance mandates.