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Bespoke Oracle VAT Information Exchange System plays Major Role in Romanian Accession to EU

Oracle Consulting Romania has successfully implemented a new technology system for the Romanian National Authority of Tax Administration (NATA) as part of a major modernisation process instrumental in Romania celebrating entry to the EU on 1st January 2007.

Project VIES (VAT Information Exchange System) is an innovative bespoke taxation system based on Oracle Database 10 g and Oracle Application Server 10g. In order to accede to the EU, it was necessary for the Romanian National Authority of Tax Administration to put a financial solution in place which would efficiently handle VAT information and transactional exchange data relating to business with other EU states.

Although the VIES system was a vital step towards EU entry for the Romanian government, the accession timeline added urgency to the procurement and deployment process. Ideally implementation would begin two years in advance of any deadline, but when Oracle signed the contract in March 2006, just six months remained for full deployment and testing. Oracle's proposal was chosen partly because of its confidence in meeting these pivotal deadlines, and ultimately the VIES system passed mandatory conformance tests set by the technical centre of the EU Commission in three months, the quickest VIES implementation across the EU member states.

One major advantage Oracle had prior to implementation was invaluable recent experience rolling-out the VIES system for the Hungarian government during that country's own EU entry process. Both systems by necessity were standards-based and followed rigid EU mandate protocols, so for Oracle the VIES project became predominantly a process of embedding a tailored system into a trusted infrastructure with guidance from the Romanian ministry of public finance. The Central Liaison Office (CLO), part of NATA and the common structure in EU Member States responsible for VIES, uses a customised interface based on local Romanian requirements to facilitate information exchange between other EU commission member states. The team of IT professionals at the Romanian ministry of public finance was fundamental in turning this project around in such a short time frame and contributing to the customisation and localisation of the Hungarian implementation.

The VIES system has officially been live since 1st January, although it was fully operational in production by December 2006 to allows other EU states an additional month to become fully familiar with the Romanian system. The VIES system is currently undergoing an important post-implementation phase, which will end in November 2007. The maintenance and support period allows the system to be modified and enhanced as required, for example to accommodate new requirements for messaging exchange between states. The major activity during this period is to test and implement business-to-business requirements, VAT on services (not only on goods) and any revisions arising from other member states.

Oracle has been a trusted advisor and major technology supplier to the Romanian government for over 12 years. Oracle Romania employs 800 people, making it the largest software company employer in the country, and is proud of its role in deploying the VIES system in Romania. It is a major, long-term employer in the country and the wider geographical region and has a deep commitment to Romania's corporate, social, political, environmental and economic responsibilities. Oracle also has an important role to play in fast-tracking technology adoption and helping to positively influence policymakers at national and EU level.

From its inception VIES was championed by the Romanian public finance minister, illustrating the significance of the project to the nation. VIES is a major standalone project of great importance to Romania and its role within the EU.

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