- Political Agreement Reached: On December 10, 2024, the Council agreed on a directive proposal from the Commission to introduce an electronic tax certificate for VAT exemptions, replacing the existing paper certificate.
- Scope and Application: The electronic certificate will be mandatory in situations involving two Member States where the exemption is not granted by way of a refund. This applies to goods exempt from VAT for entities like embassies, international organizations, or armed forces.
- Transitional Period: Member States will have a one-year transitional period to adapt to the new electronic system, ensuring a smooth transition from the current paper-based system.
- Simplifying Tax Procedures: The new digital certificate aims to simplify tax procedures, reduce administrative burdens on businesses, and lower costs. It will also facilitate the use of advanced electronic signatures and compatibility with digital administrative processes across the EU.
- Next Steps: The agreements will undergo technical and linguistic checks before formal adoption by the Council. Once adopted, the texts will be published in the EU’s Official Journal and will enter into force, officially implementing the electronic VAT exemption certificate.
Source: taxation-customs.ec.europa.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
