Changes from report parliamentary committee draft to report parliamentary committee draft

RemovedRecital 3 c (new): (3c) The VAT exemption on the supply of goods and services in intra-Community transactions could increase the possibility of fraud, especially at retail level.

RemovedRecital 4: (4) In order to increase tax collection on cross-border transactions and to end the existing fragmentation stemming from Member States’ implementation of divergent reporting systems, resulting in a significant burden on businesses and ineffective cross-border controls, rules should be laid down for Union digital reporting requirements. Such rules should provide information to tax administrations on a transaction-by-transaction basis, in order to allow cross matching of data, increase the control capabilities of tax administrations and create a deterrent effect on non-compliance, while reducing compliance costs for businesses operating in different Member States and eliminating barriers within the internal market.

RemovedRecital 4 a (new): (4a) Digital reporting requirements aimed at providing information to tax authorities on a transaction-by-transaction basis should remain fair, realisable and balanced in accordance with the principle of proportionality. The reliability of technological solutions for detecting fraud should result in increased legal certainty for taxpayers.

RemovedRecital 6: (6) The definition of an electronic invoice should be aligned with that used in Directive 2014/55/EU of the European Parliament and the Council64, to achieve standardisation in the area of VAT reporting. However, businesses, in particular SMEs, VSEs and not-for-profit bodies, should remain free to adopt other standards in line with Article 217 of Directive 2006/112/EC.

RemovedRecital 6 a (new): (6a) In order to help businesses and tax administrations, the content of the European electronic invoicing standard should be made accessible, simple and clear, in particular by publishing on the Commission's website all relevant information relating to that standard. However, given that the European electronic invoicing standard referred to in Directive 2014/55/EU is adapted to a ‘business to government’ (B2G) context, its evolution should be planned to take into account ‘business to business’ (B2B) needs.

RemovedRecital 7: (7) For the VAT reporting system to be implemented in an efficient manner, it is necessary that the information reaches the tax administration without delay. Therefore, the deadline for the issuance of an invoice for cross-border transactions should be set at 10 working days after the chargeable event has taken place. The limitation periods for the prosecution of VAT fraud should be adjusted accordingly.

RemovedRecital 10 a (new): (10a) Summary invoices save time and costs and reduce the administrative burden related to invoicing. Moreover, they reduce the possibility of errors and simplify the work for suppliers and customers thanks to simplified record keeping. Their abolition would cause considerable damage and entail additional costs for businesses.

RemovedRecital 12: (12) The growing flow of information exchanged daily requires high-performance computer software capable of transmitting the information continuously to national administrations in a secure manner. In order to facilitate for taxable persons, in particular SMEs, VSEs and not-for-profit bodies, the transmission of the invoice data, Member States should provide the taxable persons with the financial and other means that are necessary for such transmission. Those means could in particular be used for the installation of adapted software and for trainings relating to the new rules, in order to allow that the data is sent by the taxable person directly or by a third party on that taxable person’s behalf.

RemovedRecital 13: (13) Whilst the information to be transmitted through the digital reporting requirements for intra-Community transactions should be similar to what was transmitted through the recapitulative statements, it is necessary to request taxable persons to provide additional data, including bank details and payment amounts, so that tax administrations can follow not only the goods but also the financial flows and obtain appropriate information on the financial flows.

RemovedArticle 226(17) of this proposal, by referring to the bank account, ipso facto, excludes payment by credit card, cash or others such as crypto-currencies.

RemovedRecital 16 a (new): (16a) Digitisation makes companies increasingly vulnerable to cybercrime and hacker attacks. The Commission and the Member States should ensure, each as far as they are concerned, the protection of data against cyber-attacks and attacks by hackers or zappers, during their transmission, transaction by transaction, and during their storage by tax authorities.

RemovedRecital 16 b (new): (16b) The rules governing electronic invoicing and digital reporting requirements do not apply to defence-related purchases, which are exempted under Articles 143 and 151 of Directive 2006/112/EC.

RemovedRecital 16 c (new): (16c) In order to ensure the security of the data transmitted, the Commission should determine the way in which the data can be examined by the tax authorities concerned and should draw up an exhaustive list of those authorities. EPPO, Eurofisc, OLAF and Europol should be on that list.

RemovedRecital 17: (17) Several Member States have put in place, in accordance with Article 273 of Directive 2006/112/EC, divergent reporting requirements for transactions within their territories, leading to significant administrative burdens for taxable persons which operate in different Member States, as they need to adapt their accounting systems to comply with those requirements. Those divergent reporting requirements prejudice the functioning of the internal market. In order to avoid the costs derived from non-harmonised digital reporting requirements, which have led to the fragmentation of the regulatory framework, the systems implemented in Member States to report supplies of goods and services for consideration between taxable persons within their territory should comply with the same features of the system implemented for intra-Community transactions. Member States should provide for the electronic means for the transmission of the information and, as is the case for intra-Community transactions, it should be possible for the taxable person to submit the data in accordance with the European standard laid down in Implementing Decision (EU) 2017/1870, even though the relevant Member State could provide for additional means to transmit the data. The data should be allowed to be sent by the taxable person directly or by a third party on that person’s behalf.

RemovedRecital 18 a (new): (18a) The collection of individuals' personal data should not under any circumstances infringe on the right to privacy of individuals. Otherwise, it would be considered as equivalent to unlawful surveillance.

RemovedThe collection of such information allows conclusions to be drawn about the privacy of individuals on an unprecedented scale.

RemovedRecital 19: (19) In order to evaluate the effectiveness of the digital reporting requirements, the Commission should prepare an assessment report evaluating the impact of digital reporting requirements on the reduction of the VAT gap and in the implementation and compliance costs for taxable persons and tax administrations, in order to verify whether the system has achieved its objectives or needs further adjustments. In addition, the Commission should commission an independent study containing a comprehensive analysis on missing trader fraud, which is a particular category of VAT fraud, and in particular on the effectiveness of the digital reporting requirements in fighting such fraud. The Commission should also command an independent study to conduct a thorough assessment of the advantages and disadvantages of making IOSS mandatory.

RemovedRecital 20 a (new): (20a) In order to reduce the legal risk to which businesses, especially SMEs and VSEs, are exposed due to the complexity of VAT rates within the Union, the Commission should expand its databases into an up-to-date and legally binding tool that is easily accessible to businesses, providing real-time information on Union VAT rates and responses to tax inquiries.

RemovedRecital 23: (23) It is therefore necessary to lay down clear, balanced and proportionate rules to address the distortions of competition in the short-term accommodation rental and passenger transport sectors by changing the role that platforms play in the collection of VAT (becoming the ‘deemed supplier’). Under this model, platforms should be required to charge VAT where VAT is due but the underlying supplier does not charge it because they are, for example, a natural person or a taxable person using the special scheme for small enterprises. It is important to ensure that the principle of VAT neutrality is respected.

RemovedRecital 23 a (new): (23a) As the establishment of a deemed supplier model will entail additional costs for the platforms concerned, incentives should be provided to encourage them to comply as soon as possible and to prevent those additional costs from being passed on to the final consumer.

RemovedRecital 23 b (new): (23b) The deemed supplier scheme should not apply to small online travel agencies (OTAs), i.e. small suppliers of Short Term Rental (STR) accommodation (hosts and/or VAT-exempt businesses) that contribute to sustainable tourism in the Union and promote travel to less frequented places. In addition, the deemed supplier scheme should not provide a competitive advantage to large platforms, which are better able to bear additional costs.

RemovedRecital 23 c (new): (23c) It is important to ensure a level-playing field and to guarantee that rules are enforced for all platforms facilitating the supply of short-term rental accommodation and passenger transport within the Union.

RemovedRecital 24: (24) Member States interpret the place of supply of the facilitation service provided by the platforms to non-taxable persons differently. It is necessary to clarify this rule so that that the use of a facilitation platform does not in any way create a competitive advantage for a provider. It is also necessary, for the sake of clarity and legal certainty, to establish a uniform definition of the term "platform intermediary".

RemovedRecital 27 a (new): (27a) Under Council Directive (EU) 2021/5141a and national law, a series of obligations applies to platforms. The Commission should ensure that the relevant rules are harmonised before the entry into force of this Directive, in order to avoid any risk of double taxation as well as undue additional administrative burdens, which could harm the players in this sector. / 1a Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (OJ L 104, 25.3.2021, p. 1).

RemovedRecital 31 a (new): (31a) The implementation of various Union one-stop shop (UOSS) regimes in the Member States requires providing companies with sufficient technical specifications to ensure that the one-stop shop (OSS) declarations do not differ from one country to another and providing the possibility of downloading a file to submit an OSS declaration.

RemovedRecital 31 b (new): (31b) In order to simplify the day-to-day running of businesses, the Commission might consider consolidating the current three registrations (import one-stop shop (IOSS), Union one-stop-shop (UOSS) and non-Union one-stop shop (non-UOSS)) so that all supplies (namely, imported goods, services and domestic sales) can be declared through a single portal.

RemovedRecital 32: (32) Amongst other measures, Directive (EU) 2017/2455 extended the scope of the Mini OSS to become a broader OSS, covering all cross-border supplies of services to non-taxable persons taking place in the Union and all intra-Community distance sales of goods. Exceptionally, electronic interfaces, such as marketplaces and platforms, which become deemed suppliers for certain supplies of goods within the Union can also declare certain domestic supplies of goods in the Union OSS scheme. To support the objective of a single VAT registration in the Union, the scope of the Union OSS scheme should be further expanded to cover other supplies of goods, including domestic business-to-consumer supplies of goods in the Union by taxable persons who are not identified for VAT purposes in the Member State of consumption, ensuring that businesses do not need to register for VAT in each Member State where such supplies of goods to consumers take place. In addition, the scope of the Union OSS scheme should be expanded to also include domestic supplies of margin scheme goods to any person, when those goods are supplied by a taxable person (taxable dealer) who is not identified in the Member State were such supplies of goods take place. This amendment would allow taxable dealers to benefit from the OSS simplifications, and allow for the VAT due on those supplies to be declared and paid in one Member State of identification via the enlarged Union OSS scheme. The freedom, for taxable persons with fi…

RemovedRecital 35 a (new): (35a) IOSSs should operate transparently and securely. A unified approach to customs legislation and practice aims to put an end to inconsistencies, errors and double taxation.

RemovedRecital 36: (36) In order to ensure uniform conditions for the implementation of Directive 2006/112/EC, powers should be conferred on the Commission to better secure the correct use and the verification process of IOSS VAT identification numbers for the purposes of the exemption provided for in that Directive. This empowerment should allow the Commission to adopt an implementing act to introduce special measures to prevent certain forms of tax evasion or avoidance. Such special measures involve, inter alia, linking the unique consignment number with the IOSS VAT identification number. Those powers should be exercised in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the Council71 and for this purpose the committee should be the one established by Article 58 of Regulation (EU) No 904/2010 of the European Parliament and of the Council72. Any draft implementing act is to be transmitted to the European Parliament for information, in order to enable the exercise of its rights.

RemovedRecital 38: (38) Directive 2006/112/EC provides for a simplified VAT treatment of goods transferred under call-off stock arrangements where certain prescribed conditions are met. As the OSS simplification scheme for transfers of own goods is comprehensive and encompasses cross-border movements of goods that are currently covered by call-off stock arrangements under article 17a of that Directive, it is necessary to phase out these arrangements by including an end date prior to the complete removal of the call-off stock provisions in Directive 2006/112/EC. Therefore, an end date of 31 December 2025 should be laid down, after which it will no longer be possible to effect any new call-off stock arrangements. For call-off stock arrangements commencing on or before 31 December 2025, the relevant conditions, including the 12 month time limit for transferring ownership of those goods to the intended purchaser, should continue to apply. In parallel with the inclusion of this new end date, a new paragraph should be inserted in the provisions pertaining to call-off stock arrangements to ensure that those arrangements will cease to apply on 31 December 2026, as they will no longer be required after that date.

RemovedRecital 39 a (new): (39a) Recognising the importance of sustainable practices, it is important to ensure that the method for calculating the VAT on the profit margin for the sale of second-hand and collectible goods is simple and clear. The Union should consider whether other calculation methods (for example, an average VAT margin rate provided by the seller and by category of objects) are needed in order to improve the application and workings of the VAT margin scheme for second-hand goods.

RemovedMarketplaces have no idea how to capture the VAT margin applicable to second-hand and collective goods. Each country has its own tax practice in a number of areas. Similarly, the basis for calculating the margin is not identical within the EU either, since the element eligible for inclusion in the purchase price may differ from country to another. In addition, the environmental objectives commend for the re-use of goods and the circulation of second-hand goods. Creating more tax and administrative burdens could be a brake on cross-border trade of such goods.

RemovedRecital 41 a (new): (41a) The expansion of cloud computing services, as a result of digital reporting requirements, may lead to an increase in greenhouse gas emissions. The Commission should take measures and provide incentives to ensure the "greening" of the digital sector, for example by centralising data centres to optimise their functioning, by helping companies to use renewable energies instead of fossil fuels to power them and by using artificial intelligence to reduce their pollution.

RemovedRecital 41 b (new): (41b) Implementing digital reporting requirements in the markets of the 27 Member States simultaneously in 2028 will be extremely challenging, draining IT resources to breaking point. A progressive implementation of the digital reporting requirements would avoid a lack of capacity in qualified personnel to allow adaptation of all the software of the companies. Practical solutions to reduce implementation costs should be proposed by the Commission to businesses before the implementation of this Directive.

RemovedRecital 41 c (new): (41c) The digital package should be phased in as from 1 January 2025.

RemovedRecital 41 d (new): (41d) The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/17251a and delivered an opinion on 3 March 20231b. / 1a Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39). / 1b OJ C 113, 28.3.2023, p. 26.

RemovedArticle 1 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2025

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 6, Article 217 – paragraph 1 a (new): 1a. For transactions not subject to the digital reporting requirements, an invoice in pdf format with an electronic signature shall be treated as an electronic invoice and shall continue to be accepted as a valid invoice format.

Removedpdf invoice with electronic signature is a common and well accepted business practice for supplier and customers, in particular for SMEs and VSEs.

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 7, Article 218 – paragraph 1 a (new): 1a. "Electronic documents" as referred to in paragraph 1 shall also mean electronic documents which are not "electronic invoices" within the meaning of Article 217.

RemovedThe definition of an electronic invoice also includes documents created, transmitted and received by electronic means which do not certain contain certain data in a structured electronic format but, for exemple, in the form of graphics.

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 7, Article 218 – paragraph 2 a (new): 2a. The European standard on electronic invoicing referred to in Article paragraph 2 shall be published on the website of the Commission.

RemovedMaking it easier for businesses and avoiding errors.

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 7, Article 218 – paragraph 2 b (new): 2b. SMEs, VSEs and not-for-profit bodies are free to use standards recognised and in force in the Member State other than the one provided for in Directive 2014/55/EU, as long as they comply with Article 217 of Directive 2006/112/EC.

RemovedDirective 2014/55/EU is long and complex (over 150 pages). Risks for SMEs, VSEs and Not-for-Profit bodies of having to use a third party service provider to issue. This adds costs, makes the process complex and harms the competitiveness of the EU businesses.

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 7, Article 218 – paragraph 2 c (new): 2c. If the recipient of the invoice is not established in a Member State which requires the issuance of electronic invoices in accordance with paragraph 2 and does not have a fixed establishment in such Member State, he may, during the transitional period, which lasts until 1 January 2028 at least, require the issuer of the invoices to send him the invoice on paper or in any other form.

RemovedPrior to the implementation of the EU DRR (01.1.2028), it should be standardized, for the transitional period, that Member State can only impose the obligation to e-issue, transmit and receive e-invoices on taxable person who are either established in the territory of that Member State or have fixed establishment there.

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 9, Article 232: (9) Article 232 is replaced by the following:

RemovedDirective 2006/112/EC

RemovedArticle 1 – paragraph 1 – point 9, Article 232 – paragraph 1: Until the implementation of the digital reporting requirements of the Union, the use of an electronic invoice shall be subject to acceptance by the recipient, if that recipient is not established in a Member State which requires the issuance of electronic invoices in accordance with Article 218(2) and does not have a fixed establishment in such Member State.

RemovedArticle 2 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2026

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 2 – point a, Article 14a – paragraph 2: 2. Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar means, the supply of goods within the Community by a taxable person, the taxable person who facilitates the supply shall be deemed to have received and supplied those goods. The presumed provider may plead good faith and not be liable in the event that an underlying supplier does not deliberately declare that he is not a taxable person.

RemovedGood faith applies to all phases of the contract.

RemovedArticle 2 – paragraph 1 – point 2 – point b – introductory part: (b) the following paragraphs are added:

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 3: 3. Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar means, the transfer of goods to another Member State in accordance with Article 17(1) by a taxable person, other than capital goods as defined by the Member State to which the goods are dispatched or transported in accordance with Article 189, point (a), or goods in relation to which there is no full right of deduction in that Member State, the taxable person who facilitates the transfer shall be deemed to have received and supplied those goods. The presumed provider may plead good faith and not be held liable in the event that an underlying supplier does not deliberately declare that he is not a taxable person.

RemovedGood faith applies to all phases of the contract

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4: 4. Where a taxable person established only in one Member State facilitates through the use of an electronic interface such as a marketplace, platform, portal or similar means, supplies of goods only in that Member State without dispatch or transport, or with dispatch or transport which begins and ends in that Member State, that taxable person shall not be deemed to have received and supplied those goods. The presumed provider may plead good faith and not be liable in the event that an underlying supplier does not deliberately declare that he is not a taxable person.

RemovedGood faith applies all phases of the contract.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4 a (new): 4a. The principle of VAT neutrality shall be respected in all circumstances. To that end, the assessment of the status of a platform user as taxable person, to be carried out on a case-by-case basis, may be based on information transmitted by payment providers in accordance with the obligations arising from Council Directive (EU) 2020/284*. The national provisions transposing that Directive will enter into force on 1 January 2024. / * Council Directive (EU) 2020/284 of 18 February 2020 amending Directive 2006/112/EC as regards introducing certain requirements for payment service providers (OJ L 62, 2.3.2020, p. 7).

RemovedThe principle of VAT neutrality could be compromised because the underlying suppliers services would be subject to VAT, but the suppliers would not be able to deduct input on the costs related to these services.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4 b (new): 4b. The Commission shall commission an independent study after ... [two years after the implementation of the measures relating to deemed suppliers] to assess whether the rules regarding deemed suppliers have been successful and if so to identify new sectors in a similar situation, as well as to assess the advantages and disadvantages of making IOSS mandatory.

RemovedEvaluate the effectiveness of the measures adopted with a view making adjustments to the text of the Directive if necessary. The new system has not passed any tax audits in practice. Neither the tax authorities, nor the platforms have any practical experience with this new set of rules and the resulting changes in data collection, storage or accountability.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 3, Article 28a – paragraph 1 a (new): The deemed supplier scheme as provided for in the first subparagraph does not apply to small online travel agencies (OTAs).

RemovedThe introduction of the Deemed Supplier Regime (DSR) will impose disproportionate burdens and compliance costs on small and medium-sized travel agencies providing short-term accommodation. In addition, the principle of non-discrimination is not respected as hotels can claim an input credit while the underlying supplier, if they are not a taxable person, cannot claim on input credit.

RemovedArticle 2 – paragraph 1 – point 4: deleted

RemovedEach country has its own tax practice in a number of areas. Similarly, the basis for calculating the margin is not identical within the EU either, since the elements eligible for inclusion in the purchase price may differ from on country to another.In addition the environmental objectives commend to re-use of goods and the circulation of second-hand googs. Creating more tax and administrative burdens will be a brake on cross-border trade of such goods.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 7, Article 135 – paragrah 3: 3. The uninterrupted rental of accommodation for a maximum of 30 days with or without the provision of other ancillary services shall be regarded as having a similar function to the hotel sector.

RemovedA rental duration of 45 days is not usual. Few hotel stays have durations of 45 days or more.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 10, Article 143 – paragraph 1a – subparagraph 1: For the purposes of the exemption provided for in paragraph 1, point (ca), the Commission shall adopt an implementing act to introduce special measures to prevent certain forms of tax evasion or avoidance by, inter alia, linking the unique consignment number with the corresponding VAT identification number as referred to in Article 369q. It shall inform the European Parliament, EPPO, Eurofisc, OLAF, Eurojust and Europol thereof.

RemovedClose cooperation and information sharing between EP, EPPO, Eurofisc, Europol , OLAF, Eurojust leads to better coordination in combatting VAT fraud and identifying new fraudulent practices.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 12, Article 194 – paragraph 1 a (new): 1a. The non-established taxable persons whose output services would in principle fall within the scope of paragraph 1 of this Article may voluntarily register for VAT purposes in the Member State of taxation in order to be able to receive supplies in that Member State using the reverse charge mechanism under Article 194.

RemovedThe exercise of the reverse charge mechanism option under Article 194 paragraph 1 must take place in the Directive itself or in VAT Regulation (Regulation 282/2011), otherwise there is a risk of a new fragmentation of the European legal framework in VAT taxation, which is particularly worrying in view of the inclusion of these services in the Digital Reporting Requirements.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 12, Article 194 – paragraph 1 b (new): 1b. Non-established businesses shall still be able to register and account for local VAT if they so prefer;

RemovedIn order to preserve neutrality, the reserve charge for supplies by non-established taxable persons remains optional for supplying businesses. The amendment clarifies the directive.

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 14 – point b, Article 242a – paragraph 2 – subparagraph 2: Those records must be kept by the taxable person concerned for a period of 10 years from the end of the year during which the transaction was carried out.;

RemovedClarifying the text

RemovedDirective 2006/112/EC

RemovedArticle 2 – paragraph 1 – point 27, Article 369xa – paragraph 1 – point 1: (1) ‘transfer of own goods’ means the transfer of goods to another Member State in accordance with Article 17(1), including transfers pursuant to Article 14a(3).

RemovedThere is a risk of new compliance costs due to the fragmentation of the legal framework, since the definition of "capital goods" under 189(a) is placed in the hand of the individual Member States.

RemovedArticle 3 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2027

RemovedArticle 4 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2029

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 2, Article 138 – paragraph 1a.: deleted / (deleted)

RemovedThe failure to report the transaction in the EU sales list/and thus, for the future, failure to transmit the e-invoice within the deadline, would lead potentially to fines or penalties, but not rejecting the VAT exemption right, adding extra cost to the supplier.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 4, Article 222 – paragraph 1: For supplies of goods carried out in accordance with the conditions specified in Article 138 or for supplies of goods or services for which VAT is payable by the customer pursuant to Articles 194 and 196, an invoice shall be issued no later than 10 working days following the chargeable event;

RemovedThe deadline for issuing electronic invoices (2 days) is unrealistic. Items such as long chains of transactions, transshipment, temporary storage in terminals, consignment stock,..., may cause delays in issuing invoice until the delivery has reached an agreed location. Furthermore, "working days" vary from Member State to Member State. In order for Article 222 VAT Directive to be implementable in practice at all, a clear definition of the occurrence of chargeable event" in the VAT Directive is required.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 4, Article 222 – paragraph 1 a (new): For SMEs, VSEs and not-for-profit bodies the period of 10 working days referred to in paragraph 1 shall not apply. Any obligation to report transactions shall, for SMEs, VSEs and not-for-profit bodies, be based on the date of acceptance of the invoice and not on the date of receipt. SMEs, VSEs and not-for-profit bodies that outsource their accounting shall comply with regulations.

RemovedThis approach gives small businesses more time to match invoices and at the same time covers employee vacation periods during which verification and approval of invoices may not be possible within the proposed 2 days timeframe.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 4, Article 222 – paragraph 1 b (new): Practical solutions to reduce implementation costs shall be proposed by the Commission to businesses before ... [the date of entry into force of this Directive].

RemovedThe EC should make recommendations in this respect in order to compensate for invoicing and reporting obligations.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 4, Article 222 – paragraph 1 c (new): The rules defined in this Article shall not apply to defence-related purchases, which are exempted under Articles 143 and 151.

RemovedMember States tax administrations would have a wide access to sensitive information relating to defence and national security, which would undermine the confidentiality clauses in these types of contracts.

RemovedArticle 4 – paragraph 1 – point 5: deleted

RemovedThe summery invoices allow suppliers and customers to better manage their cash flow. Such a deletion would cause considerable damage and cost as well as an unnecessary increase in the administrative burden for companies and a significant environmental impact.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 16: (16) in the case of a corrective invoice, the serial number of the corrected invoice or the number or other similar identifier of the agreement from which the correction results, as referred to in point (2);

Removedcodification of the practice.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 17: (17) if the payment is made to a bank account, the IBAN number of the supplier’s bank account to which the payment for the invoice will be credited. If the IBAN number is not available, any other identifier which unambiguously identifies the bank account to which the invoice will be credited. If the transaction is carried out by credit card, in cash or by other means of payment such as crypto-currencies, any identifier providing proof of the transaction;

RemovedThe requirement to produce an IBAN number is not required when the supplier uses alternative payment methods such as the B2B clearing system.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 18: deleted

RemovedThis obligation is not relevant and creates administrative burdens and difficulties in the event of non-payment or when the payment date is different from the purchase date (e.g. intra-group transactions that no give rise to payment, barter exchanges and where there are payments in installments) because there would be no obligation for customers to pay an invoice through a bank transaction. In addition, this proposal would be particularly burdensome for small businesses established in countries.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – 18 b (new): (18b) the essential elements of an electronic invoice as set out in Article 6 of Directive 2014/55/EC.

RemovedConsistency between texts

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 9 – point a, Article 262– paragraph 1 – introductory part: Every taxable person identified for VAT purposes shall submit without undue delay to the Member State in which that person is established or identified for VAT purposes the following data on each supply and transfer of goods carried out in accordance with Article 138, on each intra-Community acquisition of goods in accordance with Article 20 and each supply of a service that is taxable in a Member State other than that in which the supplier is established:;

RemovedHonest business will probably issue invoices as early as possible. However, the missing traders can wait until the last moment to issue invoices that will be communicated the 17th of the month of the transaction.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 10, Article 263 – paragraph 1 – subparagraph 1: The data referred to in Article 262(1) shall be transmitted for each individual transaction carried out by the taxable person no later than 10 working days after the posting date in the taxable person’s accounting books, or after the date, the invoice had to be issued where the taxable person does not comply with the obligation to issue an invoice. The data shall be transmitted by the taxable person or by a third party on that taxable person’s behalf. Member States shall provide for the electronic means for submitting such data.

RemovedThe reporting deadline (2 days) implies that invoices must be reported bases on when they are received. This runs counter to business natural systems and processes, which, as a matter of essential governance and financial control, require that incoming invoices are reviewed before being booked. Failure to do so risks putting businesses in a position where it is impossible to comply without abandoning normal commercial controls and potentially exposing business to regular penalties for incorrect filing.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 10, Article 263 – paragraph 2 a (new): 2a. The rules referred in paragraphs 1 and 2 do not apply to defence-related purchases exempted under Articles 143 and Article 151.

RemovedMember States tax administrations would have wide access to sensitive information relating to defence and national security, which would undermine the confidentiality clauses in these types of contracts.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 17, Article 271b – paragraph 1: Where a Member State requires to send the data pursuant to Article 271a, the taxable person, or a third party on behalf of the taxable person, shall transmit that data on a transaction-by-transaction basis by no later than 10 working days after the posting date in the taxable person’s accounting books or after the date the invoice had to be issued where the taxable person does not comply with the obligation to issue an invoice. Member States shall allow for the transmission of data from electronic invoices which comply with the European standard on electronic invoicing referred to in Directive 2014/55/EU that covers semantic and statistic standards, but not transmission modes.

RemovedClarifying text

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 17, Article 271b – paragraph 2: Member States may allow for the transmission of the data, which may not necessarily be drawn from electronic invoices using other data formats.

RemovedIt is legally not possible to impose e-invoicing transactions with non-EU operators and it may not be legally possible in a number of Member States in respect of B2C transactions.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 17, Article 271c – paragraph 1: By 31 March 2033 at the latest the Commission shall, based on the information provided by Member States, present to the Council a report on the functioning of the domestic reporting requirements set out in this Section. In that report, the Commission shall assess the effectiveness of those requirements in relation to the objectives of this Directive and the need for further harmonisation measures and shall if deemed necessary, make an appropriate proposal for such measures.;

RemovedIt is necessary to have an assessment taking into account the real life of businesses.

RemovedDirective 2006/112/EC

RemovedArticle 4 – paragraph 1 – point 18, Article 273 – paragraph 1: Member States may impose other obligations which they deem necessary to ensure the correct collection of VAT and to prevent evasion, subject to the principles of proportionality and of equal treatment as between domestic transactions and transactions carried out between Member States by taxable persons and provided that such obligations do not, in trade between Member States, give rise to formalities connected with the crossing of borders.

RemovedRecall that the Directive must be balanced.

RemovedArticle 5 – paragraph 1 – subparagraph 2: They shall apply those provisions from 1 January 2025.

RemovedDelay too tight.

RemovedArticle 5 – paragraph 2 – subparagraph 1: Member States shall adopt and publish, by 31 December 2025, the laws, regulations and administrative provisions necessary to comply with Article 2 of this Directive.

RemovedArticle 5 – paragraph 2 – subparagraph 2: They shall apply those provisions from 1 January 2026.

RemovedArticle 5 – paragraph 3 – subparagraph 1: Member States shall adopt and publish, by 31 December 2026, the laws, regulations and administrative provisions necessary to comply with Article 3 of this Directive.

RemovedArticle 5 – paragraph 3 – subparagraph 2: They shall apply those provisions from 1 January 2027.

RemovedArticle 5 – paragraph 4 – subparagraph 2: They shall apply these provisions from 1 January 2029.

RemovedIn this respect, your rapporteur stresses the need to respect the principle of proportionality between the objective of combating fraud and the difficulties that might arise in applying the proposed rules to the real life of businesses. The fight against fraud must not be to the detriment of the majority of businesses that work in transparency and good faith.

Added a proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes.

RemovedYour rapporteur stresses that the proposals must be simple, effective and balanced for all parties concerned, in particular for SMEs, VSEs and Not-profit-bodies.

AddedThe directive and the regulation were subject to a special legislative procedure. The European Parliament was consulted and delivered its opinion on 22 November 2023.

RemovedAs regards the updating of the VAT rules applicable to passenger transport and short-term accommodation platforms, justified by the emergence of new business models, your rapporteur recalls that these new measures must be clear, non-discriminatory and neutral. He believes that the liability of the "presumed supplier/provider" instead of the "underlying provider" could increase the final price for the consumer.

AddedOn 5 November 2024, the Council agreed on the ViDA package. However, given the substantial differences between the Commission’s proposal (i.e. the Directive) on which the European Parliament was initially consulted and the text of the Council, the Council decided on 7 November 2024 to re-consult the European Parliament.

RemovedFinally, your rapporteur considers that the Single registration is one of the improvements most appreciated by EU companies, especially SMEs, which have a real need for simplification of intra-EU declaration procedures. Nevertheless, your rapporteur is concerned that the mandatory reverse charge will lead to an increase in VAT fraud and proposes that an independent study must be carried out on the reduction of VAT fraud in case of taxation of intra-Community supplies of goods and services.

AddedThe deemed supplier regime was a significant point of contention within the Council, making it particularly challenging to reach a final compromise.

RemovedFurthermore, the inclusion of second-hand goods in the UOSS system could be problematic because it is not possible for a marketplace to know the margin made by a third-party seller.

AddedThe Council decided that the deemed supplier rules will be introduced first on a voluntary basis as from July 1, 2028, and then mandatory as from January 1, 2030. Member States will also be authorised to exempt SMEs from the deemed supplier regime without having to report to the VAT committee. In its first opinion, the EP highlighted the need to limit the administrative burden for SMEs.

AddedThe Council also introduced more flexibility for Member States to operate their own invoicing systems as many member states have already invested heavily in their own software. Summary invoices are also reintroduced under certain conditions despite the Commission’s proposal to prohibit them. The Parliament also favoured the reintroduction of summary invoices in order to keep flexibility and simplicity for Member States and businesses.

AddedOn the implementation deadlines, the Parliament opinion suggested longer deadlines than in the Commission proposal. The Council even further extents the deadlines beyond the Parliament’s proposals.

AddedTherefore, the rapporteur is of the view that a simplified procedure without amendments is the relevant procedure.