Internationally active companies, such as the Schwarz Group with the retail companies Lidl and Kaufland, currently have to adapt to different VAT requirements in the various countries in which the company is active. We spoke to Alexander Kollmann, Alexander Michelutti and Robert Backes about the challenges faced by internationally active companies in the area of VAT and possible simplification and standardization due to the increasing digitization of VAT processes.
– Alexander Kollmann describes the current situation regarding global VAT compliance as a trend where tax authorities are demanding more information from taxpayers in real time and in digital form.
– The trend includes reporting individual invoices as well as other steps in the purchase and sales process chain.
– Kollmann suggests two approaches to mitigate the burden: European standardization of transactional tax reporting and the introduction of electronic invoicing (e-invoicing).
– He explains that some EU countries focus solely on digitizing their dialogue with taxpayers without linking it to mandatory e-invoicing, while others prioritize mandatory e-invoicing to digitize their economies.
– The EU Commission’s proposals for modernizing the VAT system, which include exchanging invoices in a standardized digital format and replacing summary reporting with individual invoice reporting, are seen as significant.
– Robert Backes clarifies that the EU Commission aims to redefine electronic invoicing as a structured electronic document that can be transmitted, received, and processed without media breaks, excluding scanned paper or PDF invoices.
– XML format is considered suitable for e-invoicing and is mandated by the European CEN standard 16931, while specific formats like XRechnung and ZUGFeRD are used in Germany.
– Currently, the EU Commission plans to require mandatory e-invoicing for cross-border transactions from 2028, and it may extend to domestic transactions in the future.
Source: ebnerstolz.de
