The 124th meeting of the VAT Committee, held on 11 April 2024, was chaired by the European Commission’s Directorate-General for Taxation and Customs Union. The meeting covered various procedural, housekeeping, and information points, including updates on the implementation of new VAT policies and legislative proposals.
Key Updates and Discussions
1. Implementation of Single VAT Registration (SVR)
- Preparations for SVR under the VAT in the Digital Age (ViDA) package have begun.
- A Fiscalis seminar on SVR and Import One Stop Shop (IOSS) is scheduled for June 2024.
2. VAT E-commerce Statistics
- Member States are required to provide statistical data on VAT registration, returns, and payments related to the One Stop Shop (OSS) schemes by the end of April 2024.
3. SME Scheme Implementation
- Ongoing work includes the preparation of Explanatory Notes and an SME Guide, with drafts discussed in March 2024.
- Development of an SME web portal to provide information on new rules and access to relevant EU VAT legislation is progressing well.
- Member States are reminded to update their national VAT rules and provide SME national contact points.
4. Exemptions for International Organisations
- Work is ongoing to transform VAT and Excise Duty exemption certificates into electronic forms.
5. Adoption of Commission Decision (EU) 2024/775
- This decision grants relief from import duties and VAT exemption for goods distributed to persons affected by Russia’s military aggression against Ukraine.
6. Defence Package
- Adopted by the Commission, it includes a VAT waiver on EU equipment jointly procured through the Structure for European Armament Programme (SEAP).
7. Vouchers Directive
- The Commission is finalizing an assessment report on the application of voucher rules since January 2019.
8. Taxes in Europe Database (TEDB)
- Member States are reminded to update their VAT forms in TEDB.
Consultations and Questions
1. Germany: Flat Rate Scheme for Small Enterprises
- Germany proposed a simplification measure for public bodies with limited business activity.
- The Commission expressed doubts about using Article 281 as the legal basis, suggesting it might better fit within deductions rather than special schemes for small enterprises.
2. Slovenia: VAT Grouping
- Slovenia plans to introduce VAT grouping provisions effective from January 2026.
- The Commission requested clarifications on several aspects of the draft legislation.
3. Denmark: Crypto Art and VAT
- Denmark raised questions about the VAT treatment of crypto art.
- The Commission concluded that crypto art does not fall under existing exemptions or margin schemes and suggested preparing draft guidelines.
4. Denmark: School and University Education
- Denmark sought clarification on the application of VAT exemptions for various educational services.
- The Commission emphasized a case-by-case assessment, considering vocational training and other exemptions.
5. Slovakia: Activities by Public Bodies
- Slovakia inquired about the interpretation of economic activities and public authority transactions.
- The Commission outlined a logical sequence of criteria for applying VAT rules to public bodies.
New Legislation
SME Scheme Updated as of January 2025
- Discussions continued on the functioning of the new SME scheme, focusing on issues like cross-border exemptions, reporting obligations, and corrections to notifications.
Case Law
Recent Judgments of the Court of Justice of the European Union
- An overview of recent judgments was provided, covering rulings from October 2023 to March 2024.
Any Other Business
VAT Aspects of Centralised Clearance for Customs upon Importation
- Delegations were updated on the evolution of the UCC CCI electronic system and asked to provide information on their preparations for Phase 1.
Informing the VAT Committee of Options Exercised
- Delegations were reminded to notify any exercised options under specific articles of Directive 2006/112/EC.
