Accelerating VAT modernization with cloud and AI by Capgemini

Can you make the most of mandatory ViDA reforms to deliver a digitally connected world of taxation?

VAT in the Digital Age (ViDA) reforms will digitalize VAT, helping the tax authorities of European Union member states to collect around €11 billion more in VAT revenues annually. Reforms are compulsory, but the benefits are huge. Mandatory e-invoicing and real-time digital reporting will tackle carousel fraud and tax evasion, bringing complete transparency to the charging and collection of VAT. And enabling businesses within the EU to accelerate digitalization and reduce bureaucracy.

The challenge? Right now, most EU tax authorities need to radically reform existing systems to deliver this digitally connected world of taxation.

How can we help you reap the benefits?

The Capgemini ViDA approach, leveraging cloud and AI services from Microsoft in hybrid scenarios, enables tax authorities to move decisively toward a real‑time, data‑driven VAT environment. One that aligns with the EU’s ambitions for a modernized digital economy. It gives administrations the tools and frameworks needed to accelerate the shift to real-time reporting, strengthen national sovereignty, and create more transparent and efficient VAT systems. By supporting the implementation of ViDA at scale, our approach helps member states position themselves at the forefront of the EU’s digital transformation agenda.

Our ViDA approach will help you to:

• Implement e-invoicing and close the VAT gap
• Optimize building blocks for a multi-step transformation
• Modernize your existing VAT application landscape with cloud and AI

ViDA: a multi-step transformation

The new ViDA legislation is a coordinated sequence of structural changes that will redefine how VAT information is created, exchanged, and orchestrated across EU member states. The successful delivery of ViDA requires national tax authorities to modernize their systems and redesign processes to align with a new European digital architecture.

1. B2G e-invoicing rollout
2. B2B e-invoicing mandate design
3. Real-time digital reporting infrastructure
4. EU ViDA compliance alignment
5. EU transaction data exchange and cooperation

Our dynamic, co‑creative partnership with Microsoft elevates every ViDA journey

Our partnership with Microsoft amplifies every ViDA project by combining deep taxation expertise with a mature, globally proven technology ecosystem. This is a deliberately integrated approach, designed to support the entire transformation journey, from strategic framing to industrialized delivery. It also provides tax authorities with a coherent, end-to-end pathway through this critical transformation.

Together, Capgemini brings deep domain expertise and proven delivery models, while Microsoft provides the cloud platform, AI capabilities, and sovereign infrastructure needed to power the transformation. This collaboration will not only unlock the full promise of ViDA, but also revolutionize tax collection ecosystems.

Kickstarting the real time economy across the EU

By implementing real time data driven systems, ViDA could help EU tax authorities collect up to €11 billion more in VAT revenues every year. In the process, ViDA will transform the fiscal landscape, kickstarting the real time economy across the EU.

Beyond the fiscal uplift, these reforms will give governments unprecedented visibility into the health of their economies, enabling faster, more informed policy decisions. The benefits are significant for both businesses and individuals. Simpler compliance, reduced administrative burdens, and a more competitive commercial environment.

Yet the scale of this opportunity is matched by the scale of the challenge. To realize the full value of ViDA, tax authorities must establish new digital platforms, or overcome legacy constraints to integrate modern capabilities. Working with Capgemini, tax authorities will accelerate their ViDA journey, reducing implementation risks and ensuring that new systems are designed for long term resilience.