- The Council agreed on a new directive proposal for an electronic tax certificate for VAT exemptions.
- The directive will introduce an electronic certificate to replace the existing paper certificate used when goods are to be exempt from VAT.
- The amendments to the Commission’s initial proposal limit the scope for mandatory use of the electronic certificate to cases involving two Member States and where the exemption is not granted as a refund.
- Member States will have a one-year transition period to adapt to the new system.
- The agreements will undergo technical and linguistic scrutiny before being submitted to the Council for formal approval.
- The texts will then be published in the Official Journal of the EU and will enter into force.
- The establishment of an electronic VAT exemption certificate aims to simplify tax procedures, reducing the administrative burden on businesses.
- The digital certificate will allow the use of advanced electronic signatures and facilitate compatibility with digital administrative processes.
- This change is expected to reduce costs, increase flexibility and facilitate the management of VAT exemptions across the EU.
- On July 8, 2024, the Commission published two proposals aimed at replacing the current paper VAT exemption certificate with an electronic VAT exemption certificate.
- The Council agreed on both of these proposals.
- The European Parliament was asked for its opinion on the directive proposal and issued its opinion on November 13, 2024.
Source: taxheaven.gr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
