Council introduces electronic VAT exemption certificate

The Council has reached a political agreement on a new directive to introduce an electronic tax certificate for VAT exemptions, replacing the current paper certificates used for VAT-exempt goods, such as those imported for embassies and international organizations.
The directive outlines that the electronic certificate will have a defined format and IT specifications, with a transitional period allowing both electronic and paper versions to be used; however, its mandatory use will be limited to cases involving two member states where exemptions are not granted as refunds.
The transition period for the new electronic VAT exemption certificate has been shortened from four years to one year, set for 2031-2032, allowing tax authorities to manage IT developments alongside the implementation of the recent VIDA package, with the proposals now awaiting formal adoption and publication.

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