Enabling secure, real-time tax control for the digital economy

The Five-Corner Model adds a fifth party—usually a tax authority or regulatory platform—to the traditional Four-Corner setup. It enables the transmission of business documents (like e-invoices) while also fulfilling real-time reporting requirements to the government.

Flow of the Five-Corner Model

1. Sender (Corner 1): The business initiating an invoice or document.
2. Sender’s Access Point (Corner 2): Validates and forwards the document into the network to C3.
3. Receiver’s Access Point (Corner 3): Receives document and delivers the cleared document to the receiver in their designated format.
4. Receiver (Corner 4): The final recipient of the document (business or public entity).
5. Regulatory Gateway (Corner 5): A platform, often run or certified by the government, that checks or clears the document (e.g., for VAT compliance).

All data processed within our ViDA-aligned solutions is stored in certified, high-security data centers that meet the highest standards for information protection, including ISO 27001 and SOC 2 Type II certifications.

For EU operations, all data is hosted within the European Union, ensuring full compliance with the General Data Protection Regulation (GDPR) and applicable local data sovereignty laws. Each dataset — including transactional, analytical, and audit data — is segregated according to jurisdictional boundaries and customer requirements.

For non-EU or multinational deployments, we provide region-specific storage configurations to ensure that data residency adheres to the legal and regulatory frameworks of each geography (e.g., local tax authority mandates, electronic invoicing laws, and data retention policies). This includes ensuring that any cross-border data transfer mechanisms comply with approved safeguards such as Standard Contractual Clauses (SCCs) or equivalent local frameworks.

In practice, this means that:

• Each customer’s data remains physically and logically contained within the required jurisdiction.
• Access and processing policies are configured to align with local regulatory requirements.
• Data handling, retention, and encryption are enforced according to both customer and legislative mandates.

This approach ensures that ViDA compliance and local data sovereignty obligations are fully maintained while enabling secure, scalable analytics and reporting capabilities across multiple regions.

Yes, our access point is certified to operate in over 40 countries, ensuring compliance with networks like Peppol and DBNAlliance. This allows you to offer compliant e-invoicing services globally without the need for multiple integrations.

VAT in the Digital Age (ViDA) is a European Commission legislative initiative aimed at transforming the administration of VAT across the EU through digitalization. It introduces a unified framework for real-time digital reporting, e-invoicing, and platform economy VAT rules, replacing fragmented national systems with a standardized, interoperable architecture.

Core Components of ViDA

1. Digital Reporting Requirements (DRR):ViDA mandates near real-time electronic reporting of intra-EU B2B transactions based on structured, machine-readable e-invoices aligned with EN 16931. This enables tax administrations to collect transactional data continuously rather than through periodic VAT returns.
2. Mandatory E-Invoicing Framework:The initiative removes the need for prior authorization of e-invoicing mandates by member states, promoting interoperability and reducing compliance complexity. Intra-EU transactions will be reported within two days of invoice issuance, significantly improving auditability.
3. Single VAT Registration (SVR):Businesses operating cross-border will benefit from simplified VAT registration through a single EU-wide identification, reducing administrative overhead.

Implications for Tax Authorities

For tax administrations, ViDA represents a major leap toward data-driven VAT oversight:

• End-to-end transaction visibility through structured data exchange in real or near real time.
• Automated anomaly detection using standardized invoice and transaction data models.
• Enhanced fraud prevention by addressing missing trader intra-community (MTIC) fraud via early data access.
• Interoperability across member states, allowing cross-border analytics and collaborative enforcement.

Technically, ViDA establishes a common EU digital reporting infrastructure compatible with national systems, leveraging APIs and standardized XML/UBL data formats. It aligns with ongoing CEN and eIDAS frameworks to ensure secure, verifiable data transmission and identity authentication.

In Summary

ViDA transforms VAT management from declarative reporting to continuous transaction-level supervision, enabling Tax Authorities to operate on a proactive, analytics-driven compliance model while simplifying legitimate business processes.