Foreign Tax Declaration | Use Case

Today, foreign tax declaration remains complex due to differences in national tax systems, procedures, and documentation requirements. This can make cross-border processes time-consuming.

EU Business Wallets (EBW), supported by the EU Digital Identity Wallet (EUDIW), have the potential to improve how these processes are handled.

Rather than removing all existing differences, they can enhance the speed and reliability of VAT reporting and the exchange of tax attestations between companies, intermediaries, and tax authorities. By enabling secure identification and authorization, digital mandates, electronic signing and sealing, and more efficient data exchange (including machine-to-machine communication), EBWs can help reduce administrative effort and make cross-border tax compliance more efficient and dependable within the existing frameworks.

For example

A company needs to submit a VAT declaration to a tax authority in another EU country. Instead of navigating lengthy online forms and submitting multiple documents, the company uses the European Business Wallet to securely share its identity and tax information with the relevant tax authority - either directly or through an authorised intermediary. The tax authority verifies and confirms the submission digitally, making foreign tax reporting faster, more efficient, and less administratively burdensome for businesses across the EU.

What we’re aiming for:

Secure, digitalise and streamline the process of filing (VAT) tax declaration

Secure, digitalise and streamline the process of issuing tax-attestations to, (foreign) companies, intermediaries and tax administrations, using either a Tax Portal or M2M interaction, mandates between companies and intermediaries, business wallets and personal wallets and Qualified Electronic Registered Delivery Service (QERDS)

Use Cases

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USE CASE

Know Your Business Partner (KYC/KYS/KYB due diligence)

Business due diligence within the EU involves verifying and establishing trust in business partners across Member States. Through KYC (Know Your Customer), KYS (Know Your Supplier) and KYB (Know Your Business) procedures, organisations assess legitimacy, ownership structure, financial soundness and regulatory compliance - all essential for safe and efficient cross-border cooperation.

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Create Company Branch

Creating a company branch in the EU involves enabling businesses to expand across member states while ensuring compliance, transparency, and security of corporate data. It’s a key enabler for European businesses to operate and scale with confidence across borders.

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Company Representative acting on behalf of a Company

Authorizing individuals to act legally and digitally on behalf of a business across member states, and defining which activities they are permitted to perform, is a key enabler for efficient cross-border operations, including administrative procedures and banking services.

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Issuing Micro-Credentials and Verified Skills

Micro-credentials and verified skills enable individuals to develop and demonstrate specific skills and competences through digital certificates linked to short-term learning, training or practical experience. This is a critical enabler of lifelong learning, workforce mobility, and skills transparency across Europe.

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Business Access to Once-Only Technical System (OOTS)

The Once-Only Technical System (OOTS) streamlines data retrieval for cross-border procedures, enhancing trust, efficiency, and data exchange among EU public administrations and citizens. It connects public authorities across the EU, so they can exchange official documents and data at the citizen's or business's request. It’s a key component for improving registration, compliance, and reporting processes across the EU.

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Authentication & Access for Transport

Authentication and access in transport involve verifying who or what is requesting access to transport-related systems and services, and determining what actions they are authorized to perform. This is a critical enabler of seamless logistical flows across Europe and efficient global transport operations.

USE CASE

Trusted Data Sharing for Data Spaces

Data is transforming how we live, work and innovate, powering everything from personalised medicine to smarter cities. Trusted data sharing in secure Data Spaces lets organisations optimally collaborate and innovate while keeping control, privacy, and compliance. To unlock the value of data for the EU, Common European Data Spaces have been established in strategic sectors, providing an open, secure, and privacy-preserving environment. These Data Spaces enable new data-driven services and strengthen a connected, competitive European data economy.

USE CASE

eInvoicing

eInvoicing is the structured electronic exchange of machine-readable invoice data between suppliers and buyers, enabling automatic processing, as defined in EU legislation. These structured digital invoices have many benefits, from facilitating cross-border trade and reducing late payments, to enhanced error detection and clear sustainability reporting. It’s a key enabler for improving Europe’s single market in the digital age.

USE CASE

Consumer Banking

Financial services for EU citizens, such as opening a bank account in another member state, rely on strong data protection, transparency, and regulatory compliance, while keeping the process seamless for users.

USE CASE

Consumer Payments

Consumer payments in the EU involve providing fast and secure transactions across member states while protecting users and ensuring transparency.

USE CASE

Corporate Banking

Corporate banking in the EU involves enabling businesses to operate across borders through secure financial services. This includes trusted onboarding and account opening processes, during which banks verify identities and ensure regulatory compliance.

USE CASE

Corporate Payments

Corporate payments in the EU involve enabling fast and secure cross-border transactions while ensuring compliance, data protection, and transparency. A core component of day-to-day business operations across member states.