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How ViDA will drive organizational change globally
ViDA and e-invoicing requirements will catalyze the work that many organizations need to do to better integrate tax and other business elements regarding data management and usage.
Larger organizations are using ViDA and the rise of e-invoicing as an opportunity to take a step back to consider a strategy, not just a solution. Technology is a component of that strategy, whether a single provider or several regional platforms. Organizations need a strategy because of the cost of a vendor selection every time there is a change and rushing to implement each solution takes time and effort.
Not all EU businesses and those that trade in the EU are fully aware and prepared for the fundamental change ViDA will bring. "There is definitely awareness and a sense of urgency," says Arman. "Many clients are taking a small step first. For instance, they may be planning to tackle France next year and use that as a blueprint for every other country, whether in Europe, in APAC or the Middle East. That's where your choice of how you will use technology, process and people matters a lot."
There needs to be internal alignment to tackle ViDA and the tax function needs to play a critical role from the outset. Establish a matrix clearly establishing departmental responsibility (which is responsible, which is accountable, which is consulted and which is informed) and a governance model that underpins it. The key is ensuring nothing falls between the cracks. "What we are seeing with e-invoicing is that it often does not fall under tax, but the tax function must be part of those discussions. Otherwise, there will be challenges in implementation," says Maria Hevia Alvarez, EY Global Indirect Tax Deputy Leader.
Tax leaders need to ask: What are the key requirements within ViDA that will impact the business? Tax functions need to ensure they are at least facilitating and kicking off that discussion because, ultimately, they are responsible for informing the company of those new and evolving requirements across its country footprint.