ViDA Analyzed – Part 6: Digital reporting system for intra-Community transactions: Articles 262 to 271

One of the objectives of the initiative is to replace the outdated recapitulative statements with a digital reporting requirements system for intra-Community transactions, which will provide faster information on a transaction-by-transaction basis and with higher quality. That information will feed into the risk analysis systems of the Member States to help them counter the VAT fraud linked with the intra-Community trade, in particular Missing Trader IntraCommunity fraud. For that purpose, Chapter 6 of Title XI, which referred to the recapitulative statements, refers now to digital reporting requirements, and its new section 1, to digital reporting requirements for intra-Community transactions.

The digital reporting requirements for intra-Community transactions will cover the same transactions that were covered by the recapitulative statements with the exception of the calloff stocks under the conditions set out in Article 17a, which will cease to exist. For this reason, the second paragraph of Article 262 is deleted. In addition, supplies of goods and services subject to the reverse charge mechanism in accordance with Article 194 will also be included in the recapitulative statements and consequently in the digital reporting requirements.

Article 263 provides for the main features of the new digital reporting system: the information has to be transmitted on a transaction-by-transaction basis, the deadline for the transmission of the data is two working days after the issuance of the invoice, or after the date the invoice should have been issued in case the taxable person has not complied with their obligation to issue an invoice, the transmission of the data has to be carried out electronically, and Member States will provide the means for that transmission. Finally, the information can be submitted directly by the taxable person or by a third party on their behalf.

The transmission of the data can be done according to the European Standard. Member States can provide for the transmission of the data from electronic invoices issued under a different format, as long as they also allow the use of the European Standard. In any case, the data formats allowed by Member States will have to guarantee the interoperability with the European standard.

This provision provides flexibility to Member States and taxable persons to use different data formats for the transmission of the data. However, it provides for at least one standard which will be accepted by all Member States and therefore allows companies to submit their data on intra-Community transactions according to the European Standard in any Member State, without needing to adapt to different reporting systems.

The first paragraph of Article 264 provides for the information that has to be submitted for each transaction. Basically, this information is the same that had to be submitted in the recapitulative statements, but detailed for each transaction instead of aggregated by customer. However, there are new fields that have been added to improve the detection of fraud. These new fields are the reference to the previous invoice in case of rectification of invoices, the identification of the bank account into which the payment for the invoice will be credited and the dates agreed for the payment of the amount of the transaction. With a view to a full standardization and interoperability, implementing rules shall be adopted by the Commission to define a common electronic message to this purpose.

Article 266 allowed Member States to request additional data on intra-Community transactions. This possibility runs counter to the desired harmonisation in this field. For that reason, this Article is deleted from the VAT Directive, so taxpayers will always submit the same information when they carry out an intra-Community transaction, irrespective of the Member State in which the transaction takes place.

Article 268 places an obligation on Member States to collect data from the taxpayers that, in their territory, make intra-Community acquisitions of goods or transactions treated as such. The collection of this data was optional for Member States under the recapitulative statements.

The replacement of the recapitulative statements with a new digital reporting system requires the modification of certain Articles of the VAT Directive which contained references to the recapitulative statements, to replace them with the reference to the new reporting system. This is the case with Articles 42, 138a, 262, 265 and 267. Other Articles that regulated aspects of the recapitulative statements and are no longer necessary with the new reporting system have been deleted. This is the case with Articles 266, 269, 270 and 271.

Source EU ViDA (VAT in the Digital Age) – Proposed Changes to the EU VAT Directive 2006/112/EC

New version of Chapter 6: Digital Reporting Requirements (articles 262-271) applicable as of January 1, 2028

Chapter 6: Digital reporting requirements

Section 1

Digital reporting requirements for cross-border supplies of goods and services for consideration made between taxable persons

Article 262

Every taxable person identified for VAT purposes shall submit to the Member State in which that person is established or identified for VAT purposes the following data on each supply and transfer of goods carried out in accordance with Article 138, on each intra-Community acquisition of goods in accordance with Article 20 and each supply of a service that is taxable in a Member State other than that in which the supplier is established:

(a)

the acquirers identified for VAT purposes to whom he has supplied goods in accordance with the conditions specified in Article 138(1) and point (c) of Article 138(2);

(b)

the persons identified for VAT purposes to whom he has supplied goods which were supplied to him by way of intra-Community acquisition of goods referred to in Article 42;

(c)

the taxable persons, and the non-taxable legal persons identified for VAT purposes, to whom that taxable person identified for VAT purposes has supplied goods or services, other than goods or services that are exempted from VAT in the Member State where the transaction is taxable, for which the recipient is liable to pay the tax pursuant to Articles 194 and 196.

Article 263

The data referred to in Article 262(1) shall be transmitted for each individual transaction carried out by the taxable person no later than 2 working days after issuing the invoice, or after the date the invoice had to be issued where the taxable person does not comply with the obligation to issue an invoice. The data shall be transmitted by the taxable person or by a third party on that taxable person’s behalf. Member States shall provide for the electronic means for submitting such data.

Member States shall allow for the transmission of data from electronic invoices which comply with the European standard on electronic invoicing and the list of its syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council.

Member States may allow for the transmission of the data from electronic invoices using other data formats which ensure interoperability with the European Standard on electronic invoicing.

The common electronic message for providing the data referred to in paragraph 1 shall be determined in accordance with the procedure provided for in Article 58(2) of Regulation (EU) No 904/2010.’;

Article 264

The data transmitted in accordance with Article 263 shall contain all of the following:

(a)the information referred to in Article 226, points (1) to (4), (6), (8) to (11a), (16), (17) and (18);

(b)in respect of supplies of goods consisting in transfers to another Member State, as referred to in Article 138(2), point (c), the total value of the supply, determined in accordance with Article 76

Article 265

In the case of intra-Community acquisitions of goods, as referred to in Article 42, the taxable person identified for VAT purposes in the Member State which issued him with the VAT identification number under which that person made such acquisitions shall set out the following information in the data to be transmitted:

(a)that person’s VAT identification number in that Member State and under which the acquisition and subsequent supply of goods were made;

(b)the VAT identification number, in the Member State in which dispatch or transport of the goods ended, of the person to whom the subsequent supply was made by the taxable person;

(c)the value, exclusive of VAT, of each supply made by the taxable person in the Member State in which dispatch or transport of the goods ended

Article 266 is deleted

Article 267

Member States shall take the measures necessary to ensure that persons who, in accordance with Article 194 or 204, are regarded as liable for payment of VAT, instead of a taxable person who is not established in their territory, comply with the obligation, laid down in this Chapter, to submit the data.

Article 268

Member States shall require that taxable persons who, in their territory, make intra-Community acquisitions of goods, or transactions treated as such pursuant to Article 21 or 22, submit data on those transactions as provided for in this Chapter.

Articles 269-271 are deleted

ViDA Analyzed – Part 6: Digital reporting system for intra-Community transactions: Articles 262 to 271

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