VAT guidelines for cross-border transactions

The VAT guidelines for cross-border transactions are one milestone for making the everyday life and reporting duties of businesses easier.

  • 7. June 2023

The aim of the VAT guidelines pilot is to demonstrate how to use existing VAT-codes more precisely and accurately in the future. That is to indicate cross-border sales to bookkeeping in a standardized way, therefore benefiting reporting obligations.

We developed the guidelines after tests and discussions with businesses. We realized that different parties use different VAT Tax Category codes for similar transactions, which can be confusing and causes extra labour further down the road. 

The guidelines will help standardize the codes. Standardization is key to further automation. 

Through piloting invoices, orders, and catalogues, between the Nordic countries, we stated that there was a need for clearer guidelines for the use of VAT codes and rates. That was the reason why the NSG&B VAT guideline was created” says Jan Mærøe project manager NSG&B

Read the VAT-guidelines

Having tested and developed the guidelines with businesses, we are already a step ahead of international development. A proposal for an EU directive “VAT in the digital age” recently suggested electronic reporting obligations for cross-border business transactions. This means that the EU is setting obligations for electronic and real-time reporting. 

With the VAT guidelines for SMEs and accountants, we can offer a head start for easy and almost real-time reporting. The VAT guidelines provide an increased ability to create a process where information is needed, and reporting obligations can be covered without lengthening the time spent on administrative duties.