Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the electronic value added tax exemption certificate.
Objective
The purpose of the proposal is to amend the VAT Directive (Council Directive 2006/112/EC) in order to introduce an electronic exemption certificate for transactions that qualify for a specific exemption. Currently, there is a paper version of the exemption certificate, but it is proposed to be replaced by an electronic certificate to reduce administrative burden and comply with EU legislation on electronic processing of documents.
The proposal aims to align with the electronic procedures already in place for excise duties. The Commission will adopt implementing measures to specify the technical details and specifications of the electronic certificate, in consultation with the Standing Committee on Administrative Cooperation. The proposal is based on a feasibility and cost analysis conducted at the request of Member States.
The proposal was discussed in various meetings and received support for a digital solution involving a PDF e-form and a fully electronic process. Member States will be allowed to continue using the paper version during a transitional period until June 30, 2030, to facilitate the transition to the electronic procedure. The electronic exemption certificate will apply to both domestic and cross-border transactions and also when the exemption is granted through a VAT refund.
The proposal includes a provision stating that if the conditions for exemption are not met or cease to apply, the issuer of the certificate is liable for the VAT due. Member States may take measures to allow eligible bodies or individuals to pay the VAT without full registration. The proposal also ensures consistency with existing policies and EU digitalization initiatives.
The legal basis for the proposal is Article 113 of the Treaty on the Functioning of the EU, which allows for harmonization of indirect taxation rules. The principle of subsidiarity is considered, and the proposal is deemed necessary at the Union level to achieve its aims.
Changes to the EU VAT Directive 2006/112/EC
In Article 151 of Directive 2006/112/EC, the following paragraphs 1a and 1b are inserted:
‘1a. Member States shall use an electronic certificate to confirm that a transaction qualifies for an exemption provided for in paragraph 1, first subparagraph. The eligible body or individual to whom the exempt supply of goods or services is made, shall issue the certificate and, together with the host Member State, shall sign it by electronic means.
If the goods or services are intended for official use, Member States may dispense the eligible body or individual from the requirement to have the certificate signed by the host Member State under the conditions they may lay down. This dispensation may be withdrawn in the case of abuse. Member States shall inform the Commission of the contact point designated to identify the services responsible for signing the certificate by electronic means and the extent to which they dispense with this requirement. The Commission shall inform the other Member States of the information received from Member States.
By way of derogation from the first two subparagraphs, Member States may opt to use the paper version of the certificate set out in Annex II to Council Implementing Regulation (EU) No 282/2011* for any transaction made until 30 June 2030.
The Commission shall, by means of implementing acts, determine the technical details and specifications as regards the electronic format of the certificate referred to in the first subparagraph and its processing. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 5 of Regulation (EU) No 182/2011 and for this purpose the committee shall be the committee established by Article 58 of Regulation (EU) No 904/2010.
1b. Without prejudice to paragraph 3, if the conditions for exemption laid down in paragraph 1, first subparagraph, are not met or cease to apply, the eligible body or individual who issued and signed the certificate shall be liable to pay the VAT to the Member State where it is due.
Source eur-lex.europa.eu
Changes to the EU Implementing regulation 282/2011
Source eur-lex.europa.eu
ANNEX to the Proposal for a Council Implementing Regulation amending Implementing Regulation (EU) No 282/2011 as regards the electronic value
added tax exemption certificate
Source eur-lex.europa.eu
