Changes from report parliamentary committee draft to report parliamentary committee draft

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.