- The European Council reached a political agreement on a new Directive for introducing an electronic VAT exemption certificate
- The electronic certificate will replace the current paper certificate used for VAT exemptions on goods imported for embassies, international organizations, or military forces
- The exact electronic format and necessary computer specifications will be discussed by expert groups and determined by the Commission’s implementing acts
- During a transitional period, member states can use both electronic and paper versions
- Member states made amendments to the initial Commission proposal, limiting mandatory use of the electronic certificate to situations involving two member states without granting exemptions through refunds
- The Council added key elements to the Directive for the electronic certificate that the Commission will consider when designing the format
- The transition period was shortened from four years (2026-2030) to one year (2031-2032) to allow tax authorities time to spread out necessary technological advancements and investments for implementing the VIDA package
- The agreements will undergo technical and linguistic checks before being formally adopted by the Council and published in the Official Journal of the EU to come into effect
- On July 8, 2024, the Commission published proposals to replace the paper VAT exemption certificate with an electronic one, including a Council Directive amendment and a Council Implementing Regulation amendment
- Both proposals were approved by the Council, and the European Parliament was consulted on the Directive proposal and issued its opinion on November 13, 2024
Source: audiconsultores-etlglobal.com
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.
