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
Digital reporting system for intra-Community transactions
Article 263 provides for the main features of the new digital reporting system: the information has to be transmitted on a transaction-by-transaction basis, the deadline for the transmission of the data is two working days after the issuance of the invoice, or after the date the invoice should have been issued in case the taxable person has not complied with their obligation to issue an invoice, the transmission of the data has to be carried out electronically, and Member States will provide the means for that transmission. Finally, the information can be submitted directly by the taxable person or by a third party on their behalf.
The transmission of the data can be done according to the European Standard. Member States can provide for the transmission of the data from electronic invoices issued under a different format, as long as they also allow the use of the European Standard. In any case, the data formats allowed by Member States will have to guarantee the interoperability with the European standard.
This provision provides flexibility to Member States and taxable persons to use different data formats for the transmission of the data. However, it provides for at least one standard which will be accepted by all Member States and therefore allows companies to submit their data on intra-Community transactions according to the European Standard in any Member State, without needing to adapt to different reporting systems.
Current of article 263
Article 263
1. The recapitulative statement shall be drawn up for each calendar month within a period not exceeding one month and in accordance with procedures to be determined by the Member States.
1a. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement for each calendar quarter within a time limit not exceeding one month from the end of the quarter, where the total quarterly amount, excluding VAT, of the supplies of goods as referred to in Articles 264(1)(d) and 265(1)(c) does not exceed either in respect of the quarter concerned or in respect of any of the previous four quarters the sum of EUR 50 000 or its equivalent in national currency.
The option provided for in the first subparagraph shall cease to be applicable after the end of the month during which the total value, excluding VAT, of the supplies of goods as referred to in Article 264(1)(d) and 265(1)(c) exceeds, in respect of the current quarter, the sum of EUR 50 000 or its equivalent in national currency. In this case, a recapitulative statement shall be drawn up for the month(s) which has (have) elapsed since the beginning of the quarter, within a time limit not exceeding one month.
1b. Until 31 December 2011, Member States are allowed to set the sum mentioned in paragraph 1a at EUR 100 000 or its equivalent in national currency.
1c. In the case of supplies of services as referred to in Article 264(1)(d), Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement for each calendar quarter within a time limit not exceeding one month from the end of the quarter.
Member States may, in particular, require the taxable persons who carry out supplies of both goods and services as referred to in Article 264(1)(d) to submit the recapitulative statement in accordance with the deadline resulting from paragraphs 1 to 1b.
2. Member States shall allow, and may require, the recapitulative statement referred to in paragraph 1 to be submitted by electronic file transfer, in accordance with conditions which they lay down.
New version of article 263
Article 263
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 2 working days after issuing the invoice, 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.
Member States shall allow for the transmission of data from electronic invoices which comply with the European standard on electronic invoicing and the list of its syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council.
Member States may allow for the transmission of the data from electronic invoices using other data formats which ensure interoperability with the European Standard on electronic invoicing.
2. The common electronic message for providing the data referred to in paragraph 1 shall be determined in accordance with the procedure provided for in Article 58(2) of Regulation (EU) No 904/2010.’;
Comments: Reporting of the data two days after the invoice is or should have been issued is very short.
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
- ViDA – Impact on business processes – Part 5: An invoice shall be issued no later than 2 working days following the chargeable event as Jan 1, 2028
- ViDA – Impact on business processes – Part 6: Elimination of the possibility to issue summary invoices (art. 223) as of Jan 1, 2028
- ViDA – Impact on business processes – Part 7: Content of the invoices (art. 226), 3 new data points as of Jan 1, 2028
Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
