On 8 December the European Commission (“EC”) launched its long-awaited proposals to modernize the VAT rules within the EU collectively known as “VAT in the Digital Age package” (“ViDA”). Note that is still a PROPOSAL subject to change.
ViDA has 3 pillars:
- Digital Reporting Requirements (DRR)
- Platform Economy
- Single EU VAT Registration
The timeline to (E-)Invoices will be limited to 2 days after the chargeable event has taken place for transactions subkect to article 138 (Intra-EU exempted supply of goods), article 194 (So-called domestic reverse-charge) and article 196 (VAT liability shifted to the customer if the services are supplied by a taxable person not established within the territory of the Member State).
Current version Article 222 in the EU VAT Directive 2006/112/EU
For supplies of goods carried out in accordance with the conditions specified in Article 138 or for supplies of services for which VAT is payable by the customer pursuant to Article 196, an invoice shall be issued no later than on the fifteenth day of the month following that in which the chargeable event occurs.
For other supplies of goods or services Member States may impose time limits on taxable persons for the issue of invoices.
Change per Jan 1, 2028
Article 222, the first paragraph is replaced by the following:
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 2 working days following the chargeable event.
In this serie ….
- ViDA – Impact on business processes – Part 1: End of the Quick Fix on Call-off simplification, start of Special Scheme for transfer of own goods per Jan 1, 2024
- ViDA – Impact on business processes – Part 2: Recipient should be able to accept E-invoices, Member States may make it mandatory to issue E-Invoices as of Jan 1, 2024
- ViDA – Impact on business processes – Part 3: Member States ”Shall Allow” ”Domestic Reverse Charge” as of Jan 1, 2025 (Art. 194)
- ViDA – Impact on business processes – Part 4: Invoices SHALL be issued in a structured electronic format if subject to Digital Reporting Requirements as of Jan 1, 2028
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
