Data-based reporting
Data-based reporting for reducing administrative burden
The project Data-based reporting developed from the Zero Bureaucracy initiative. It provides a solution for the automatic exchange of data required by the state, based on the principles of simplicity and minimum burden. Data-based reporting is a joint project of the Estonian Tax and Customs Board, Statistics Estonia and Eesti Pank. As of 2024, several other institutions have joined the project (such as the Centre of Registers and Information Systems, the Environmental Board etc.). The first stage is reducing enterprises’ burden in the submission of data on wages and salaries and labour costs. Next, the focus will be on data about economic transactions, accommodation and the environment. Further areas will be incorporated in the future.
At the moment, the data submission burden means that enterprises have to collect the necessary data from information systems, make calculations based on these inputs and then submit the final data in separate official environments at different times. One way to reduce this burden is to automate reporting by using machine-to-machine communication. It means that enterprises continue to use their information systems as before, but the data required for reporting are captured from the information system and transmitted directly to the relevant authority. In order to adopt such a solution, an enterprise might have to adjust its information systems to ensure the correct format of the transmitted data.
Enterprises should look at how their information systems can be updated, to allow them to use automatic reporting software. There is some initial set-up involved and more detailed description of transactions required during the implementation of the new software features, but this will result in a considerable decrease in the time spent on data preparation and submission. Enterprises will still be able to submit data in eSTAT, which is gradually developed for better usability. Based on the data reported automatically, the relevant questionnaires are automatically confirmed in eSTAT. Statistics Estonia is also actively analysing where registers could serve as the primary data source.
TThe automatic data exchange takes place via X-tee, which is a data exchange layer for information systems. The data structure is standardised, meaning that a generic taxonomy is created, and the new international data exchange standard eXtensible Business Reporting Language Global Ledger (XBRL GL) is adopted.
What is XBRL GL?
XBRL GL is a structured XML-based format for information interchange. It is intended for the faster, more efficient and cost-effective transmission, processing and analysis of business and financial information. By adopting a data exchange file format based on an international standard, it is possible to generate analogous data exchanges between different applications, leading to much greater gains. The taxonomy is based on the XBRL GL standard and its extension called Dimensions 1. The taxonomy is updated in the financial information system as needed but no more than once a year.
Data transmission in the XBRL GL format is based on transactions recorded in the enterprise’s financial information system and enriched with taxonomy elements (classifications), which are summarised to a set of taxonomy elements. The details of the necessary classifications have to be defined in the financial information system, after which data of the same type can be aggregated for reporting purposes.
Data provider’s view on Data-based reporting (in Estonian)
Software developer’s view on Data-based reporting (in Estonian)
Materials for software developers
Statistics Estonia has published the taxonomy, sample reports and the structure of the feedback report necessary for the automatic reporting of data on wages and salaries and labour costs. Software developers can use these for reference as they modify the financial information systems of data providers to enable data exchange. This solution makes data submission more convenient for enterprises, with data transmitted to the recipient authority directly from the enterprise’s financial information system.
The taxonomy for Data-based reporting is a preliminary version that may be modified during further analysis and taxonomy development. In addition to the wages and salaries and labour costs taxonomy, there are several additional taxonomies (i.e. water, waste, energy etc.) that are currently being analysed and developed by relevant institutions. The already available taxonomy for wages and salaries and labour costs has been created with universal elements that can be implemented in a similar way in taxonomies in other domains.
Statistics Estonia has the technical capability to receive data based on the wages and salaries and labour costs taxonomy. This capability covers the full workflow (checking the file structure, running data content checks, generating the feedback report, automatically confirming the relevant questionnaires in eSTAT based on data received). The Estonian Tax and Customs Board is currently analysing and developing such technical capability at their end.