VAT in the Digital Age: what does the biggest VAT reform of this century entail?

On 8 December 2023, the European Commission announced its most ambitious EU VAT reform plans of this century. Below is a short summary of the proposed measures with links to the proposed legislation.

Digital reporting requirement

Every business will have to issue e-invoices according to the EU standard (EN16931) for intra-EU B2B supplies and report these sales to the tax administration no later than two days after issuing the invoice. There will be no exemptions for small businesses or businesses established outside the EU. The current reporting requirement for intra-EU B2B trade (EC sales lists) will be abolished. Other country-specific domestic compliance obligations (e.g. VAT listings, SAF-T) will not be affected but must become aligned with the EU standard by 2028. Member States will be allowed to implement mandatory e-invoicing for domestic sales without requesting permission from the European Commission.

Source Aleksandra Bal

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