“The IDW welcomes the objective of the package of measures to use digital technologies to combat tax fraud and to adapt VAT regulations to digital business activities. In particular, VAT fraud in the form of cross-border carousel fraud causes significant tax losses every year according to the published data. Real-time electronic monitoring and e-invoicing can be effective countermeasures against this form of VAT fraud.
However, new obligations must not only be passed on to taxpayers, but also require cooperative interaction between taxpayers and tax administrations. The IDW also points out that other elementary prerequisites for the effectiveness of the measures are an efficient cross-border evaluation and use of the data as well as cross-border cooperation between the tax authorities of the Member States.
The IDW also notes that the timetable for the measures appears very ambitious. This applies in particular to the planned elimination of Art. 232 VAT Directive from January 1st, 2024. From this point in time, companies can only issue electronic invoices – regardless of the introduction of a national e-invoicing obligation. Conversely, all companies should be able to receive (structured) e-invoices and process them with their IT systems from January 1st, 2024.
In addition, the IDW suggests that the period of two days provided for in Art. 222 of the draft directive for issuing invoices for intra-Community deliveries in accordance with Art. 138 VAT Directive and deliveries and services for which the recipient of the service pays the tax in accordance with Art. 194 and 196 VAT Directive owes to reconsider. In the case of complex deliveries or services in particular, for which acceptance is required, for example, such a shortened period will lead to difficulties in practical implementation.
From a systematic point of view, the IDW believes that the planned new regulations for updating the VAT regulations in the area of the platform economy and the only VAT registration in the EU are to be welcomed in principle.
Source: idw.de“
