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REPORT (COM(2024)0278 – C100083/2024 – 2024/0152(CNS))

On the proposal for a Council directive amending Directive 2006/112/EC as regards the electronic value added tax exemption certificate

A-10-2024-0012

Committee on Economic and Monetary Affairs · Rapporteur: Aurore Lalucq

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Parliament approves the Commission proposal for a Council directive introducing an electronic value added tax exemption certificate to replace the paper version. The certificate confirms that a transaction qualifies for a VAT exemption under Article 151(1) of Directive 2006/112/EC, covering diplomatic, consular, international body, NATO forces, and UK forces in Cyprus supplies. The electronic certificate does not change the scope of exemptions, aims to reduce administrative burden, and includes anti-abuse measures making the issuer responsible for VAT if conditions are not met.

Committee position. The Committee on Economic and Monetary Affairs proposes that Parliament approve the Commission proposal without amendment.

Key points

  1. Parliament approves the Commission proposal without amendment.
  2. The proposal replaces the paper VAT exemption certificate with an electronic one for transactions under Article 151(1) of Directive 2006/112/EC.
  3. Exemptions cover supplies under diplomatic and consular arrangements, to international bodies and their members, and to NATO forces and civilian staff in certain contexts.
  4. Exemptions also cover supplies to UK armed forces stationed in Cyprus under the 1960 Treaty of Establishment.
  5. The electronic conversion supports digital government interactions and strengthens citizens' rights regarding personal data processing.
  6. The proposal removes administrative burden and costs of paper certificates; implementation costs are covered by the FISCALIS programme within its current financial envelope.
  7. The new certificate does not affect the scope of VAT exemptions, so there is no impact on the EU budget based on gross national income.
  8. If exemption conditions are not met or cease, the eligible body or individual who issued and signed the certificate is responsible for paying VAT; member states may allow payment without full VAT registration.

Who is affected

  • Diplomatic missions, consular posts, international bodies, NATO forces, and UK forces in Cyprus that use VAT exemption certificates.
  • Member states, which must provide access to the central application and may allow simplified VAT payment in exceptional cases.

Legal basis: Article 113 of the Treaty on the Functioning of the European Union