Unforeseen consequences may arise in 2033 from potential modifications to the current proposal of the VAT in the Digital Age (ViDA) project, particularly concerning the Digital Reporting Requirements (DRR). The Commission is expected to present an interim evaluation report by March 31, 2033, which will inform whether additional measures are necessary based on the information collected from Member States.
What will happen in 2033???
Reference to the ViDA proposal
Per July 1 2030 in Title XI, Chapter 6, the following Section 2 is inserted:
Section 2
Digital reporting requirements for supplies of goods and services for consideration made between taxable persons within the territory of a Member State
Article 271c of the EU VAT Directive 2006/112/EC applicable as July 1, 2030
Article 271c
By 31 March 2033 at the latest the Commission shall, based on the information provided by Member States, present to the Council an interim evaluation report on the functioning of the electronic invoicing set out in Chapter 3 and of the intra-EU and domestic digital reporting requirements set out in this Chapter. In that report, the Commission shall:
– assess the effects of the measures on the effectiveness of the VAT collection and the reduction of the VAT gap, on the number of controls carried out by the tax
administration as well as on the reduction of the administrative burden and on cost savings for taxable persons;
– assess the effects of the option offered to Member States in Article 262(1), second subparagraph, on VAT fraud in other Member States and on the functioning of the central VIES;
– assess the technical issues derived from the implementation of the measures such as errors, delays and omissions related to the transmission of the invoices and the data;
– take stock of the measures and services put in place by Member States and made available to taxpayers to alleviate their administrative burden;
– take stock of possible new technological developments in the areas of electronic invoicing and digital reporting;
– assess accordingly the need for further measures and, if deemed necessary, make an appropriate legislative proposal for such measures.
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