ViDA – Impact on business processes – Part 10: DRR is to be issued by both the supplier and the customer as of Jan 1, 2028

On 8 December the European Commission (“EC”) launched its long-awaited proposals to modernize the VAT rules within the EU collectively known as “VAT in the Digital Age package” (“ViDA”). Note that is still a PROPOSAL subject to change.

ViDA has 3 pillars:

Digital Reporting Requirements (DRR)
Platform Economy
Single EU VAT Registration

Digital reporting system for intra-Community transactions: Articles 262 to 271

Jan 1, 2025

As of Jan 1, 2025, supplies of goods and services subject to the reverse charge mechanism in accordance with Article 194 will also be included in the recapitulative statements and consequently in the digital reporting requirements.
in Article 262, paragraph 1, point (c) is replaced by the following:
‘(c)the taxable persons, and the non-taxable legal persons identified for VAT purposes, to whom that taxable person identified for VAT purposes has supplied goods or services, other than goods or services that are exempted from VAT in the Member State where the transaction is taxable, for which the recipient is liable to pay the tax pursuant to Articles 194 and 196.’

Jan 1, 2026

The digital reporting requirements for intra-Community transactions will cover the same transactions that were covered by the recapitulative statements with the exception of the call-off stocks under the conditions set out in Article 17a, which will cease to exist.
For this reason, the second paragraph of Article 262 is deleted.

Jan 1, 2028

The replacement of the recapitulative statements with a new digital reporting system requires the modification of certain Articles of the VAT Directive which contained references to the recapitulative statements, to replace them with the reference to the new reporting system. This is the case with Articles 42, 138a, 262, 265 and 267. Other Articles that regulated aspects of the recapitulative statements and are no longer necessary with the new reporting system have been deleted. This is the case with Articles 266, 269, 270 and 271.
The recapitulative statement needs to be issued for each supply and transfer of goods:
- carried out in accoradance with Article 138 (Exempted Intra-EU supply of goods)
- on each intra-community acquisition of goods (art. 20)
- and each supply of a service taxable in a MS other than that in which the supplier is established

Article 262 is amended as follows:

(a)in paragraph 1, the introductory wording is replaced by the following:

‘Every taxable person identified for VAT purposes shall submit to the Member State in which that person is established or identified for VAT purposes the following data on each supply and transfer of goods carried out in accordance with Article 138, on each intra-Community acquisition of goods in accordance with Article 20 and each supply of a service that is taxable in a Member State other than that in which the supplier is established:

New version of article 262 as of Jan 1, 2028

Every taxable person identified for VAT purposes shall submit to the Member State in which that person is established or identified for VAT purposes the following data on each supply and transfer of goods carried out in accordance with Article 138, on each intra-Community acquisition of goods in accordance with Article 20 and each supply of a service that is taxable in a Member State other than that in which the supplier is established:

(a) the acquirers identified for VAT purposes to whom he has supplied goods in accordance with the conditions specified in Article 138(1) and point (c) of Article 138(2);
(b) the persons identified for VAT purposes to whom he has supplied goods which were supplied to him by way of intra-Community acquisition of goods referred to in Article 42;
(c) the taxable persons, and the non-taxable legal persons identified for VAT purposes, to whom that taxable person identified for VAT purposes has supplied goods or services, other than goods or services that are exempted from VAT in the Member State where the transaction is taxable, for which the recipient is liable to pay the tax pursuant to Articles 194 and 196.

Comments from vatupdate.com:

From 2028 the European Sales Listing will stop to exist. How will this impact the MS where the ESL is submitted together with the Intrastat?
The introductionary wording is replaced of this article, which seems to say that there is no change in paragraphs a) – c), which means that transactions that are exempt should not be reported (i.e. it is still relevant to carve them out).
The introductory wording of art. 262 there is no reference to art. 194, it only comes back under (c).
Based on the new introductory wording, also customers doing intra-community acquisitions of goods in accordance with art. 20, need to report data. But the under (a), (b) and (c), it only refers ”to whom” supplies are made by way of intra-community acquisition of goods referred to in art. 42

In this serie ….