VAT in the Digital Age: Suggested amendments European Parliament

Recently, two reports of the ECON (Committee on Economic and Monetary Affairs, part of the European Parliament (EP)) with 251 suggested amendments on the ViDA proposal were published. In this alert we give you an overview of the most remarkable amendments.

Reports

The first document, dated 5 May 2023, was discussed in the ECON meeting of 25 May 2023 and includes 87 suggestions for amendments in the form of a "draft European Legislative Resolution". Some of the suggested amendments include a justification.

The second document, dated 20 June 2023, appears to be the result of the request from the EP for further input during the meeting of 25 May. This document includes amendment 88 - 251. In this document each suggested amendment includes the source of the amendment (e.g. individual members of the EP, or groups like the ECR group) and some include "justifications" for the amendment. Some of these amendments erode elements the ViDA proposal and limit harmonization considering national preferences.

It is very unsure how this will further develop, but the suggestions for amendments are worth mentioning [number between brackets is the number of the amendment]

General

• Postpone the proposal with one year [#40 and #156 for Article 1, #48 and #166 for Article 2, #63 and # #197 for Article 3, and #64 and #198 for Article 4], or even two years [#155 for Article 1, #165 for Article 2, #196 for Article 3, #199 for Article 4]

E-invoice and Digital Reporting

• Extend the deadline for e-invoices to 10 business days [#66 and #206] / 7 days [#205] / 5 days [#207 and #208] / 12 days [#209] and for the digital report to 10 days after posting the transaction in the books [#76] / 12 days [#220] / 7 days [#221] / 5 days [#222] after the invoice.
• Specify that PDF invoices with an electronic signature are acceptable electronic invoices insofar no digital reporting requirements apply [#41].
• More relaxed e-invoice requirements for, amongst others, SMEs [#44 and #67].
• If the recipient of the invoice is not established in a Member State which requires the issuance of electronic invoices it may during the transitional period require the issuer of the invoices to send him the invoice on paper or in any other form [#45] and keep e-invoices subject to acceptance by recipient unless required [#47].
• Only require statement of the IBAN in case of payment by bank account, in other cases a reference to such payment [#72] and not require the due date [#73 / #214 / #218 / #219] / not require IBAN at all [#214 / #215 / #216].
• Keep [until 2028] the current definition of e-invoice [#158].
• Allow Member States to require an e-invoice in a non-EU format [#161] / for local supplies [#162] / also after 2028 [#201].
• Make e-invoices subject to acceptance of recipient unless mandatory [#163].
• Mandatory structured e-invoices for local supplies exceeding EUR 1,000 [#202].
• Allow Member States to accept non e-invoices after 2028 [#203 / #204].
• Allow summary invoices [#210 / #211] / for local supplies only [#212] / with e-invoice only [#213].
• Allow local digital reporting requirements for purchases (next to sales) based on non-EU standards [#224 - #226].

Single VAT registration

• The right to register to claim input VAT where the new reverse charge rule [art 194] applies [#59] and make it explicit that the new reverse charge rule is optional for taxpayers [#60].
• Extend scope of new movement of own goods scheme to include capital goods [#62].
• Remove the dis-allowance to apply the VAT exemption for intra Community supplies in case of failure to not report these in the digital reporting requirements [#65 / #200].
• Delete the new mandatory reverse charge rule [art 194] [#182] / apply it in case of no registration and make it mandatory for the taxable persons [#183] / make it optional for member states (like it currently is) [#184].

Marketplaces

• The removal of marketplace fiction for short-term accommodation and passenger transport [#170] / limit the transport to road transport [#171 and #186] / not apply it to taxable persons applying the scheme for small businesses [#172] / not apply it if no VAT would be due of no marketplace was involved [#173].
• Not treat the platform service as an intermediary service [#175] due to budget constraints for Member States.
• Adjust the 45 days qualification for short-term accommodation [#176 - #179].

Other

• Delete Article 284 - 287 with derogations to Member States [#188 - #191].

Finally

Please note that not all amendments will make it to the final proposal. We will monitor further developments.

These and other related news items can also be found on our dedicated ViDA website.