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DRAFT 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

ECON-PR-763197

Committee on Economic and Monetary Affairs · Rapporteur: Aurore Lalucq

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The draft report 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 transactions qualify for VAT exemptions under Article 151(1) of Directive 2006/112/EC, covering diplomatic, consular, international body, NATO forces, and UK forces in Cyprus supplies. The proposal removes administrative burden, has low implementation costs covered by FISCALIS, and does not affect the EU budget or scope of exemptions. It strengthens anti-abuse measures: if exemption conditions are not met, the certificate issuer is responsible for paying VAT, and Member States may allow payment without full VAT registration.

Committee position. The rapporteur fully supports the objectives of the directive and approves the Commission proposal without amendments.

Key points

  1. Parliament approves the Commission proposal for a Council directive amending Directive 2006/112/EC to introduce an electronic VAT exemption certificate.
  2. The electronic certificate replaces the paper version and confirms that a transaction qualifies for an exemption 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 proposal aims to reduce administrative burden and costs from paper certificates; implementation costs are covered by the FISCALIS programme.
  6. The new certificate does not change the scope of VAT exemptions and has no impact on the EU budget based on gross national income.
  7. If exemption conditions are not met or cease, the eligible body or individual who issued and signed the certificate is responsible for paying VAT to the member state.
  8. Member States are encouraged to allow VAT payment without full VAT registration in such exceptional cases.

Who is affected

  • Suppliers of goods and services under diplomatic, consular, international body, NATO, and UK forces arrangements will use the electronic certificate.
  • Eligible bodies or individuals issuing certificates become responsible for paying VAT if exemption conditions are not met.
  • Member states must provide access to the central application and may allow VAT payment without full registration in exceptional cases.

Figures and deadlines

  • 16 August 1960: date of the Treaty of Establishment concerning the Republic of Cyprus, referenced for UK forces.

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