The Commission services’ opinion outlines the implications and considerations surrounding the amendments to the VAT Directive introduced by the ViDA package, focusing on electronic invoicing and digital reporting. Here are the key points:
- Mandatory Electronic Invoicing: The amended Articles 218 and 232 allow Member States to mandate electronic invoicing for domestic transactions without needing derogation, facilitating a quicker adoption of electronic invoicing systems.
- Scope of Transactions and Taxpayers: Member States can determine which transactions are subject to mandatory electronic invoicing, and this obligation can apply to both B2B and B2C transactions. However, the requirement cannot extend to taxpayers not established within the Member State.
- Independence from Reporting Systems: The opinion emphasizes that mandatory electronic invoicing is independent of reporting obligations. Member States can implement electronic invoicing without it being linked to immediate reporting of invoice data to tax authorities until the more stringent requirements come into effect on July 1, 2030.
- Transition to EU Standards: While Member States have the flexibility to choose electronic invoicing standards before July 1, 2030, the new rules will require compliance with the EU standard for specific transactions after that date. The Commission advises that adopting the EU standard early can minimize adaptation costs.
- Call for Member State Input: The Commission seeks feedback from Member States regarding the implementation of these changes and the associated impacts on businesses and tax administrations, encouraging a collaborative approach to ensure a smooth transition to the new electronic invoicing framework.
Source WP1102: New legislation matters concerning the implementation of recently adopted EU VAT provisions
