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REPORT (COM(2022)0701 – C90021/2023 – 2022/0407(CNS))

On the proposal for a Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age

A-9-2023-0327

Committee on Economic and Monetary Affairs · Rapporteur: Olivier Chastel

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the proposed Council directive updates VAT rules for the digital age, covering digital reporting, electronic invoicing, and platform economy rules. It postpones application dates, extends deadlines for invoice issuance and data transmission, and adjusts rules for deemed suppliers, one-stop shops, and reverse charge. It emphasizes proportionality, data protection, and support for SMEs, and calls for studies and reports on fraud and system effectiveness.

Committee position. The Committee on Economic and Monetary Affairs proposes to approve the Commission proposal as amended, with changes to deadlines, scope, and safeguards.

Key points

  1. Approves the Commission proposal as amended, calling on the Commission to alter its proposal accordingly.
  2. New VAT obligations should be simple, clear, effective and balanced, respecting proportionality and fundamental rights to privacy and data protection.
  3. Electronic invoicing becomes default from 1 January 2028, with no prior authorisation or recipient acceptance required for cross-border transactions.
  4. Deadline for issuing invoices for cross-border transactions is set at 8 working days after the chargeable event.
  5. Data on intra-Community transactions must be transmitted within 3 working days after posting in accounting books.
  6. Domestic reporting requirements allow transmission within 5 working days after posting, with options for other formats.
  7. Deemed supplier model applies to platforms facilitating short-term accommodation rental and passenger transport by road, with exemptions for small platforms and certain services.
  8. Reverse charge becomes mandatory when supplier is not identified for VAT in the member state, but non-established businesses may register locally if they choose.
  9. Call-off stock arrangements end on 31 December 2026, with new arrangements not possible after 31 December 2025.
  10. Records for platform supplies must be kept for seven years.
  11. Commission must report on VAT one-stop shop by 31 December 2024 and assess reverse charge effectiveness by 31 December 2028.

Who is affected

  • Businesses, especially SMEs and micro-undertakings, face new reporting obligations but get extended deadlines and simplified options.
  • Platforms facilitating short-term accommodation and passenger transport are deemed suppliers, with exemptions for small platforms.
  • Tax administrations receive more data and must provide electronic means for transmission, ensuring data protection.
  • Defence-related purchases are exempt from electronic invoicing and reporting rules.

Figures and deadlines

  • 8 working days after chargeable event for invoice issuance.
  • 3 working days after posting date for transmitting data.
  • 5 working days after posting date for domestic reporting.
  • 1 January 2028: electronic invoicing default, no acceptance required.
  • 31 December 2025: end date for new call-off stock arrangements.
  • 31 December 2026: call-off stock arrangements cease to apply.
  • Seven years for keeping records.
  • 31 December 2024: Commission report on one-stop shop.

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