Proposal for a COUNCIL REGULATION amending Regulation (EU) No 904/2010 on administrative cooperation and combating fraud in the field of value added tax
Date: 2016-12-01
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: VAT, administrative cooperation, broadcasting, electronic commerce, exchange of information, import (EU), tax exemption, tax offence, telecommunications, third country

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   EUROPEAN COMMISSION  Brussels, 1.12.2016  COM(2016) 755 final 2016/0371 (CNS)   Modernising VAT for cross-border B2C e-commerce Proposal for a COUNCIL REGULATION amending Regulation (EU) No 904/2010 on administrative cooperation and combating fraud in the field of value added tax {SWD(2016) 379} {SWD(2016) 382}  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This proposal is part of the package of legislation on modernising VAT for cross-border B2C 
e-commerce.  The  context  for  the  package  as  a  whole  is  set  out  comprehensively  in  the 
explanatory  memorandum  for  the  proposal  for  a  Council  Directive  amending  Directive 
2006/112/EC  and  Directive  2009/132/EC  as  regards  certain  value  added  tax  obligations  for 
supplies of services and distance sales of goods - COM(2016) 757.  

The  proposal  to  amend  Regulation  (EU)  No  904/2010  on  administrative  cooperation  and 
combating fraud in the field of value added tax1 is an important element of the package as it 
provides  the  basis  for  the  underlying  IT  infrastructure  and  the  necessary  cooperation  by 
Member States to ensure the success of the extension of the Mini One Stop Shop (MOSS) to 
services other than telecommunications, broadcasting and electronically supplied services and 
to distance sales of goods, both within the Community and from outside the Community. The 
overall package is estimated to increase VAT revenues for Member States by EUR 7 billion 
annually and reduce regulatory costs for business by EUR 2.3 billion annually. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The proposal is based on Article 113 of the Treaty on the Functioning of the European Union 
(TFEU).  This  article  provides  for  the  Council,  acting  unanimously  in  accordance  with  a 
special legislative procedure and after consulting the European Parliament and the Economic 
and Social Committee, to adopt provisions for the harmonisation of Member States' rules in 
the area of indirect taxation. 

• 

Subsidiarity (for non-exclusive competence)  

The proposal is consistent with the principle of subsidiarity as the main problems which have 
been identified (distorting effects, high administrative burdens and compliance costs, etc.) are 
triggered by the rules of the existing Council Directive 2006/112/EC on the common system 
of  value  added  tax2  (the  'VAT  Directive')  and  associated  acts.  Given  that  VAT  is  a  tax 
harmonised at Community level, Member States cannot by themselves set different rules and 
therefore  any  initiative  to  modernise  VAT  for  cross-border  e-commerce  requires  a  proposal 
by the Commission to amend the VAT Directive and associated acts. It is considered that the 
proposal will clearly offer value over and above what can be achieved at Member State level. 
In particular, in addition to the technical changes required to extend the scope of the MOSS, 
this proposal will reduce administrative burdens for taxable persons making use of the MOSS 
by providing for the principle that requests for records from tax administrations to the taxable 
persons  and  administrative  enquiries  should  always  be  coordinated  by  the  Member  State  of 
identification of the taxable person. 

• 

Proportionality 

The proposal is consistent with the principle of proportionality i.e. it does not go beyond what 
is  necessary to  meet the objectives of the TFEU in  particular  the smooth  functioning of the 
single market. As to the subsidiarity test, it is not possible for Member States to address the 
problems and problem drivers without a proposal to amend the VAT Directive and associated 

1 
2 

OJ L 268, 12.10.2010, p. 1. 
OJ L 347, 11.12.2006, p. 1. 

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acts.  Two  aspects  of  the  proposal  are  very  important  in  terms  of  proportionality.  The  first 
relates to the coordination by Member States in respect of administrative queries and audits of 
businesses  within  the  MOSS  system.  This  coordination  can  lead  to  a  more  effective  and 
efficient  compliance  regime  for  both  Member  States  and  businesses.  However,  a  Member 
State of consumption will not be prohibited from direct contact with businesses if the Member 
State of identification does not agree with the need for an audit. The second aspect relates to 
the  introduction  of  an  administrative  fee  whereby  the  Member  State  of  identification  will 
receive a fee of 5% of the amounts collected on behalf of other Member States to compensate 
for the investment needed to update the MOSS IT system following the extension of its scope, 
ongoing maintenance costs and the resources spent controlling businesses established in that 
Member State with a view to bolstering cooperation and improving compliance. 

• 

Choice of the instrument 

This proposal amends Council Regulation (EU) No 904/2010.  

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

This proposal is part of the package of legislation on modernising VAT for cross-border B2C 
e-commerce.  The  results  of  the  ex-post  evaluation,  stakeholder  consultation  and  the  impact 
assessment are set out in detail in the explanatory memorandum for the proposal for a Council 
Directive  amending  Directive  2006/112/EC  and  Directive  2009/132/EC  as  regards  certain 
value  added  tax  obligations  for  supplies  of  services  and  distance  sales  of  goods  - 
COM(2016) 757. 

In the stakeholder consultation, business representatives were strongly in  favour of the need 
for  Member  States  to  coordinate  audits  as,  otherwise,  a  business  could  be  faced  with  a 
scenario  of  receiving  28  separate  audit  requests.  The  lack  of  such  a  provision  under  the 
current  legislation  has  led  to  uncertainty  for  businesses  particularly  in  cases  where  they 
receive  correspondence  from  other  tax  administrations.  Further,  most  Member  States  have 
indicated that they are also in favour of this approach as it is a more efficient means of using 
audit  resources.  In  terms  of  the  impact  assessment,  the  preferred  option  which  included 
coordination  of  audits  was  estimated  to  lead  to  higher  reductions  in  compliance  costs  for 
businesses compared to the alternatives. 

4. 

BUDGETARY IMPLICATIONS 

This proposal is part of the package of legislation on modernising VAT for cross-border B2C 
e-commerce. The budgetary implications for the proposal as a whole are set out in detail in 
the  explanatory  memorandum  for  the  proposal  for  a  Council  Directive  amending  Directive 
2006/112/EC  and  Directive  2009/132/EC  as  regards  certain  value  added  tax  obligations  for 
supplies of services and distance sales of goods - COM(2016) 757. 

This element of the package is estimated to have important positive budgetary implications. 
The coordination of audits together with the incentive of the administrative fee should result 
in risk based audits. A more efficient audit process which focuses on audit yield should lead 
to  higher compliance rates  compared to  the alternative of an uncoordinated approach which 
can  needlessly  tie  up  resources.  Inefficient  use  of  scarce  audit  resources  can  also  have 
secondary  effects  whereby  other  businesses  outside  the  MOSS  system  are  not  properly 
audited and this can lead to lower compliance rates under VAT and other taxes and hence a 
negative budgetary impact. 

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5. 

• 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

The provisions relating to the MOSS included in Council Regulation (EU) No 904/2010 need 
to  be  amended  and  completed  following  the  proposed  amendments  to  the  VAT  Directive. 
These  provisions  cover  the  rules  and  procedures  for  the  exchange  by  electronic  means 
between taxable persons and their tax administration as well as between Member States' tax 
administrations  of  VAT  information  concerning  VAT  identification,  VAT  returns  and  VAT 
payments within the MOSS.  

Articles  1(4),  2(2),  17(1)(d)  and  31  of  the  Regulation  are  amended  so  as  to  reflect  the 
extension of the scope of the MOSS to services other than telecommunications, broadcasting 
and  electronically  supplied  services  (hereafter  'electronic  services')  and  to  distance  sales  of 
goods (Article 1, points 1 to 4 of the proposal).  

The title of Section 2 of Chapter XI of the Regulation is amended so as to limit its application 
until 31 December 2020 (Article 1, point 5(a) of the proposal). 

Article 1, point 5(b) of the proposal inserts a new Section 3 in Chapter XI of the Regulation. It 
contains the provisions applicable from 1 January 2021. 

Subsection  2  of  Section  3  (Articles  47b  to  47g)  contains  the  provisions  relating  to  the 
exchange  of  information  between  Member  States  concerning  the  identification  of  taxable 
persons making use of the MOSS, VAT returns and VAT payments. They mirror the existing 
provisions  of  Section  2  of  Chapter  XI  and  extend  them  to  services  other  than  electronic 
services and to distance sales of goods. 

Subsection 3 of Section 3 (Articles 47h to 47k) contains the provisions relating to control of 
transactions and taxable persons. Article 47h provides that the Member State of importation 
should  verify  the  validity  of  the  VAT  identification  number  to  be  provided  to  the  customs 
authorities upon importation of goods for which VAT is declared and paid using the MOSS. 
A valid VAT identification number is a condition for the application of the exemption upon 
importation of such goods. Articles 47i and 47j provide that requests for records by Member 
States to taxable persons and administrative inquiries should be coordinated by the Member 
State  of  identification,  so  as  to  avoid  uncoordinated  requests  for  records  or  administrative 
inquiries  by  several  Member  States  of  consumption.  Similarly,  Article  47k  provides  for  the 
intervention  of  the  Member  State  of  identification  for  the  notification  of  a  tax  assessment 
issued  by  a  Member  State  of  consumption  following  an  administrative  enquiry  and  for  the 
collection of the amounts due from such an assessment.  

Subsection 4 of Section 3 (Article 47l) provides for the payment of a fee of 5% to be paid by 
the  Member  States  of  consumption  to  the  Member  State  of  identification  in  order  to 
compensate the latter Member State for the costs linked to the collection and control of VAT 
under the special schemes. Under the current MOSS, Member States are allowed to retain a 
certain  percentage  of  the  amounts  of  VAT  which  they  collect  and  have  to  transfer  to  the 
Member  States  of  consumption  until  end  of  20183.  The  proposal  introduces  a  permanent 
mechanism, similar to established practice in the field of customs, allowing the Member State 
of identification to receive a fee of 5% of the amounts collected on behalf of other Member 
States to compensate for the investment needed to update the MOSS IT system following the 
extension of its scope, ongoing maintenance costs and the resources spent controlling business 
established  in  that  Member  State  with  a  view  to  bolstering  cooperation  and  improving 

3 

30% from 1 January 2015 until 31 December 2016; 15% from 1 January 2017 until 31 December 2018; 
no retention anymore from 1 January 2019. 

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compliance.  Under  the  current  system  (Article  46(3)  of  the  Regulation)  these  amounts  are 
retained from each VAT payment in the MOSS from the Member States of identification to a 
Member State of consumption, which however caused a lot of complications, in particular in 
dealing with refunds to taxable persons. It is therefore proposed to calculate this fee annually 
and outside the MOSS based on the net amounts involved. 

Subsection  5  of  Section  3  (Article  47m)  provides  for  the  possibility  for  the  Commission  to 
automatically access information related to the MOSS stored in the Member States' electronic 
systems, with the exception of any personal data. This would allow the Commission to collect 
statistical  information  automatically  (e.g.  on  the  number  of  taxable  persons  registered  in  a 
special  scheme)  without  having  to  question  Member  States.  This  is  also  necessary  for 
evaluation purposes required under Better Regulation rules. 

Subsection 6 of Section 3 (Article 47n) confers the implementing powers to the Commission 
needed  to  determine  the  data  to  be  included  in  the  information  exchanges  concerning 
identification, VAT returns, VAT payments, requests for records or administrative enquiries, 
etc.,  between  taxable  persons  and  Member  States  or  between  Member  States  as  well  as  the 
technical  means  for  the  submission  or  transmission  of  this  information.  For  clarity,  these 
provisions are grouped in a single article instead of including them in every single provision 
concerned, as is the case in the current text of the Regulation. 

Finally,  Article 1, point 6 of the proposal amends  point (1) of Annex I,  aligning  it with  the 
proposed amendments to the VAT Directive regarding distance sales of goods (deletion of its 
Article 34). 

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2016/0371 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 904/2010 on administrative cooperation and combating 
fraud in the field of value added tax 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 113 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Parliament1, 
Having regard to the opinion of the European Economic and Social Committee2, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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2 
3 

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Council Regulation (EU) No 904/20103 lays down rules on the exchange and storage 
of  information  by  Member  States  in  order  to  establish  the  special  schemes  provided 
for by Chapter 6 of Title XII of Council Directive 2006/112/EC4. 

The extension from 1 January 2021 of those special schemes to distance sales of goods 
and  services  other  than  telecommunications,  broadcasting  or  electronically  supplied 
services  requires  extending  the  scope  of  the  rules  of  this  Regulation  concerning  the 
provision  of  information  and  transfer  of  money  between  the  Member  State  of 
identification and the Member States of consumption. 

The extension of  the special schemes to  distance  sales  of goods imported from third 
territories or third countries requires that the customs authority of the Member State of 
importation is able to identify imports of goods in small consignments for which value 
added  tax  (VAT)  is  to  be  paid  through  one  of  the  special  schemes.  The  VAT 
identification number under which VAT is paid should therefore be communicated in 
advance  to  enable  customs  authorities  to  check  its  validity  upon  importation  of  the 
goods.  

Taxable  persons  using  such  special  schemes  may  be  subject  to  requests  for  records 
from  and  administrative  enquiries  by  the  Member  State  of  identification  and  all  the 
Member States of consumption where goods or services are supplied to. To reduce the 
administrative  burden  and  compliance  costs  for  businesses  as  well  as  for  tax 
administrations  of  multiple  requests  for  records  and  administrative  enquiries  and  to 

OJ C , , p. . 
OJ C , , p. . 
Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating 
fraud in the field of value added tax (OJ L 268, 12.10.2010, p. 1). 
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 
347, 11.12.2006, p. 1). 

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(5) 

(6) 

(7) 

(8) 

avoid duplication of work, such requests and enquiries should as much as possible be 
coordinated by the Member State of identification. 

As under the special schemes, a Member State of identification collects and controls 
VAT on behalf of the Member States of consumption, it is appropriate to provide for a 
mechanism whereby the Member State of identification would receive a fee from the 
Member States of consumption concerned compensating for the costs of collection and 
control.  However,  as  the  current  system  whereby  a  fee  is  retained  from  the  VAT 
amounts to be transferred by the Member State of identification to the Member States 
of  consumption  has  caused  complications  for  tax  administrations,  in  particular  when 
dealing  with  reimbursements,  such  a  fee  should  be  calculated  and  paid  annually, 
outside the special schemes. 

To simplify the collection of statistical data concerning the application of the special 
schemes,  the  Commission  should  be  authorised  to  automatically  access  general 
information  related  to  the  special  schemes  stored  in  the  Member  States'  electronic 
systems, with the exception of data concerning individual taxable persons. 

The information to be submitted by the taxable person and to be transmitted between 
Member  States  for  the  application  of  the  special  schemes,  as  well  as  the  technical 
means for the submission by the taxable person or the transmission of this information 
between  Member  States  should  be  adopted  in  conformity  with  the  regulatory 
procedure provided for in Article 5 of Regulation (EU) No 182/2011 of the European 
Parliament and of the Council5. 

Taking  account  of  the  time  needed  to  put  in  place  the  measures  necessary  to 
implement  this  Regulation  and  for  the  Member  States  to  adapt  their  IT  system  for 
registration and for declaration and payment of the VAT as well as to take into account 
amendments  introduced  by  Article  2  of  Council  Directive  […]/EU6,  this  Regulation 
should apply from the date of the application of those amendments.  

(9) 

 Regulation (EU) No 904/2010 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EU) No 904/2010 is amended as follows: 

(1) in Article 1, paragraph 4 is replaced by the following: 

Article 1 

 ‘4. 
This  Regulation  also  lays  down  rules  and  procedures  for  the  exchange  by  electronic 
means  of  VAT  information  on  goods  and  services  supplied  in  accordance  with  the  special 
schemes  provided  for  in  Chapter  6  of  Title  XII  of  Directive  2006/112/EC  and  also  for  any 
subsequent exchange of information and, as far as goods and services covered by the special 
schemes  are  concerned,  for  the  transfer  of  money  between  Member  States’  competent 
authorities.’ 

(2) in Article 2, paragraph 2 is replaced by the following: 

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Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 
Council  Directive  […]/EU  of  […]  amending  Directive  2006/112/EC  and  Directive  2009/132/EC  as 
regards certain value added tax obligations for supplies of services and distance sales of goods. 

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The  definitions  contained  in  Articles  358a,  369a  and  369l  of  Directive  2006/112/EC 

‘2. 
for the purposes of each special scheme shall also apply for the purposes of this Regulation.’ 

 (3) in Article 17(1), point (d) is replaced by the following: 

‘(d) 

information  which  it  collects  pursuant  to  Articles  360,  361,  364,  365,  369c,  369f, 
369g, 369o, 369p, 369s and 369t of Directive 2006/112/EC.’ 

(4) Article 31 is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

‘1. 
The competent authorities of each Member State shall ensure that persons involved in 
the  intra-Community  supply  of  goods  or  of  services  and  non-established  taxable  persons 
supplying services, are allowed to obtain, for the purposes of such transactions, confirmation 
by electronic means of the validity of the VAT identification number of any specified person 
as  well  as  the  associated  name  and  address.  This  information  shall  correspond  to  the  data 
referred to in Article 17.’ 

(b) 

paragraph 3 is deleted. 

(5) Chapter XI is amended as follows: 

(a) 

the heading of Section 2 is replaced by the following: 

‘Provisions applicable from 1 January 2015 until 31 December 2020’ 

(b) 

the following Section 3 is added: 

‘SECTION 3 
Provisions applicable from 1 January 2021 

Subsection 1 

General provision 

Article 47a 

The provisions of this Section shall apply from 1 January 2021. 

Subsection 2 
Exchange of information 

Article 47b 

1. 
The information provided by the taxable person making use of the special scheme in 
Section  2  of  Chapter  6  of  Title  XII  of  Directive  2006/112/EC  to  the  Member  State  of 
identification when his activities commence pursuant to Article 361 of that Directive shall be 
submitted  by  electronic  means.  Similar  details  for  the  identification  of  the  taxable  person 
making  use  of  the  special  scheme  in  Section  3  of  Chapter  6  of  Title  XII  of  Directive 
2006/112/EC when his activities commence pursuant to Article 369b of that Directive shall be 
submitted by electronic means. 

2. 
The  Member  State  of  identification  shall  transmit  the  information  referred  to  in 
paragraph 1  by  electronic  means  to  the  competent  authorities  of  the  other  Member  States 
within 10 days from the end of the month during which the information was received from the 
taxable person making use of one of the special schemes in Sections 2 and 3 of Chapter 6 of 
Title XII of Directive 2006/112/EC. In the same manner, the Member State of identification 

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shall inform the competent authorities of the other Member States of the allocated individual 
VAT identification number. 

3.  
The Member State of identification shall without delay inform by electronic means the 
competent authorities of the other Member States if the taxable person making use of one of 
the special schemes in Sections 2 and 3 of Chapter 6 of Title XII of Directive 2006/112/EC is 
excluded from that special scheme. 

Article 47c 

1. 
The information provided by the taxable person making use of the special scheme in 
Section  4  of  Chapter  6  of  Title  XII  of  Directive  2006/112/EC  or  his  intermediary,  to  the 
Member State of identification when his activities commence pursuant to Article 369p(1) and 
(2) of that Directive shall be submitted by electronic means. Any changes in this information 
provided  pursuant  to  Article 369p(3)  of  Directive  2006/112/EC  shall  also  be  submitted  by 
electronic means. 

The  Member  State  of  identification  shall  transmit  the  information  referred  to  in 
2. 
paragraph 1  by  electronic  means  to  the  competent  authorities  of  the  other  Member  States 
within 10 days from the end of the month during which the information was received from the 
taxable  person  making  use  of  the  special  scheme  in  Section  4  of  Chapter  6  of  Title  XII  of 
Directive 2006/112/EC or, where applicable, his intermediary. 

3. 
The Member State of identification shall without delay inform by electronic means the 
competent  authorities  of  the  other  Member  States  if  the  taxable  person  making  use  of  the 
special  scheme  in  Section  4  of  Chapter  6  of  Title  XII  of  Directive  2006/112/EC  or,  where 
applicable, his intermediary is excluded from the special scheme. 

Article 47d 

The  VAT  return  with  the  details  set  out  in  Articles 365,  369g  and  369t  of  Directive 

1. 
2006/112/EC shall be submitted by electronic means.  

The Member State of identification shall transmit this information by electronic means 
2. 
to  the  competent  authority  of  the  Member  State  of  consumption  concerned  at  the  latest 
20 days after the end of the month during which the return was received.  

The  Member  State  of  identification  shall  also  transmit  the  information  provided  for  in 
paragraphs 2  and  3  of  Article 369g  of  Directive  2006/112/EC  to  the  competent  authority  of 
the Member State of establishment concerned.  

Member States which have required the VAT return to be made in a national currency other 
than euro, shall convert the amounts into euro using the exchange rate valid for the last date of 
the  tax  period.  The  exchange  shall  be  done  following  the  exchange  rates  published  by  the 
European Central Bank for that day, or, if there is no publication on that day, on the next day 
of publication.  

Article 47e 

The Member State of identification shall transmit by electronic means to the Member State of 
consumption  the  information  needed  to  link  each  payment  with  a  relevant  quarterly  VAT 
return or an assessment.  

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Article 47f 

The  Member  State  of  identification  shall  ensure  that  the  amount  the  taxable  person 
1. 
making use of one of the special schemes provided for in Chapter 6 of Title XII of Directive 
2006/112/EC  or,  if  applicable  his  intermediary,  has  paid  is  transferred  to  the  bank  account 
denominated  in  euro  which  has  been  designated  by  the  Member  State  of  consumption  to 
which the payment is due.  

Member  States  which  required  the  payments  in  a  national  currency  other  than  euro  shall 
convert the amounts into euro using the exchange rate valid for the last date of the tax period. 
The exchange shall be done following the exchange rates published by the European Central 
Bank for that day, or, if there is no publication on that day, on the next day of publication.  

The transfer shall take place at the latest 10 days after the end of the month during which the 
payment was received. 

2. 
If  the  taxable  person  making  use  of  the  special  scheme  or,  if  applicable,  his 
intermediary  does  not  pay  the total  tax  due,  the Member  State  of  identification  shall  ensure 
that the payment is transferred to the Member States of consumption in proportion to the tax 
due  in  each  Member  State.  The  Member  State  of  identification  shall  inform  by  electronic 
means the competent authorities of the Member States of consumption thereof.  

Article 47g 

Member  States  shall  notify  by  electronic  means  the  competent  authorities  of  the  other 
Member  States  of  the  relevant  bank  account  numbers  for  receiving  payments  in  accordance 
with Article 47f. 

Member States shall without delay notify by electronic means the competent authorities of the 
other Member States and the Commission of changes in the tax rates applicable for supplies 
of goods and services to which the special schemes apply.  

Subsection 3 
Control of transactions and taxable persons 

Article 47h 

Member States shall, upon importation of goods on which VAT is declared under the special 
scheme provided for in Section 4 of Chapter 6 of Title XII of Directive 2006/112/EC, verify 
the validity of the individual VAT identification number allocated by way of Article 369q of 
that  Directive  and  communicated  in  advance  in  respect  of  that  importation  to  the  Member 
State where the importation takes place.  

Article 47i 

1. 
To  obtain  the  records  held  by  a  taxable  person  or  intermediary  pursuant  to 
Articles 369,  369k  and  369x  of  Directive  2006/112/EC,  the  Member  State  of  consumption 
shall first make a request to the Member State of identification by electronic means. 

Where the Member State of identification receives such a request, it shall transmit that 

2. 
request by electronic means and without delay to the taxable person or his intermediary. 

3. 
Upon request, a taxable person or his intermediary shall submit the requested records 
by electronic means to the Member State of identification. A standard form may be used for 
submitting the records to the Member State of identification.  

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The  Member  State  of  identification  shall  transmit  the  records  obtained  by  electronic 

4. 
means and without delay to the requesting Member State of consumption. 

5. 
Where  the  requesting  Member  State  of  consumption  does  not  receive  the  records 
within 30 days of the request, that Member State may take any action in accordance with its 
national legislation to obtain such records. 

Article 47j 

If  the  Member  State  of  identification  decides  to  carry  out  in  its  territory  an 
1. 
administrative  enquiry  on  a  taxable  person  who  makes  use  of  one  of  the  special  schemes 
provided  for  in  Chapter  6  of  Title  XII  of  Directive  2006/112/EC  or,  if  applicable,  on  an 
intermediary it shall inform in advance the competent authorities of the other Member States. 

If the Member State of consumption decides that an administrative enquiry is required, 

2. 
it shall first consult with the Member State of identification on the need for such an enquiry.  

In  cases  where  the  need  for  an  administrative  enquiry  is  agreed,  the  Member  State  of 
identification shall inform the other Member States.  

In  cases  where  the  Member  State  of  identification  does  not  agree  on  the  need  for  an 
administrative  enquiry,  it  shall  inform  the  other  Member  States  of  consumption  concerned 
outlining its reasons. If at least two Member States consider that an administrative enquiry is 
required, the Member State of identification shall be required to undertake an administrative 
enquiry in coordination with those Member States. If only one Member State of consumption 
considers  that  such  an  enquiry  is  needed,  that  Member  State  of  consumption  may  take  any 
appropriate actions according to its national law. 

3. 
Any  Member  State  of  consumption  concerned  may  participate  in  an  administrative 
enquiry carried out by the Member State of identification of its own initiative or at the request 
of a Member State of consumption. For this administrative enquiry, the tools and procedures 
referred to in this Regulation may be used. 

Each  Member  State  shall  communicate  to  the  other  Member  States  and  the 
the  competent  person  responsible  for  coordination  of 

4. 
Commission 
administrative enquiries within that Member State.  

the  details  of 

Article 47k 

On  completion  of  an  administrative  enquiry  carried  out  in  accordance  with  Article 47j,  a 
Member State of consumption may decide to issue, according to its national law, a new tax 
assessment, including possible interest and penalties to be paid. 

Where a Member State of consumption issues such an assessment, it shall request the Member 
State of identification, pursuant to Article 25, to notify this assessment to the taxable person 
or,  if  applicable,  his  intermediary  and  to  collect  the  amount  due  from  this  assessment.  This 
request  for  notification,  as  well  as  the  subsequent  notification  to  the  taxable  person  or,  if 
applicable, his intermediary shall be made by electronic means.  

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Subsection 4 
Fees pertaining to the collection and control of taxes collected under the special schemes 

Article 47l 

The Member State of identification shall be paid by the Member State of consumption a fee 
relating  to  the  total  amount  collected  on  behalf  of  that  Member  State  under  the  special 
schemes provided for in Chapter 6 of Title XII of Directive 2006/112/EC. 

This  fee  shall  be  calculated  as  5%  of  the  total  amount  collected  by  that  Member  State  of 
identification  on  behalf  of  the  Member  State  of  consumption,  including  those  amounts 
collected after an administrative enquiry pursuant to Article 47j.  

The fee to be paid annually based on a full calendar year shall be transferred by the Member 
State of consumption to that Member State of identification at the latest by 31 March of the 
following calendar year.  

Subsection 5 
Statistical information 

Article 47m 

Member  States  shall  grant  the  Commission  access  to  statistical  information  stored  in  their 
electronic system pursuant to Article 17(1)(d). This information shall not contain any personal 
data.’ 

Subsection 6 
Conferral of implementing powers 

Article 47n  

The Commission shall be empowered to adopt the following measures in accordance with the 
examination procedure provided for in Article 58(2): 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

the  information  to  be  submitted  by  the  taxable  person  as  referred  to  in  Articles 
47b(1), 47d(1) and 47i(3), as well as the technical means for the submission of this 
information; 

the  information  to  be  transmitted  between  Member  States  as  referred to  in  Articles 
47b(2) and (3), 47c(2) and (3), 47d(2), 47e, 47f(2), 47i(1), (2) and (4), 47j(1), (2) and 
(4) and 47k as well as the technical means for the transmission of this information; 

the minimum list of the information to be submitted by the taxable person as referred 
to  in  Article  47c(1),  as  well  as  the  technical  means  for  the  submission  of  this 
information; 

the technical means for the transmission between Member States of the information 
referred to in Articles 47g;  

the  technical  means  by  which  the  information  referred  to  in  Article  47h  is  to  be 
verified by the Member State of importation; 

the information  to  be accessed  by the Commission as  referred to in  Article 47m as 
well as the technical means for the extraction of this information.’ 

(6) Annex I is amended as follows:  

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(a) 

‘1. 

(b) 

point 1 is replaced by the following: 

distance selling (Article 33 of Directive 2006/112/EC);’ 

point 3 is replaced by the following: 

telecommunication  services,  radio  and  television  broadcasting  and  electronically 
‘3. 
supplied  services  (Article  58  of  Directive  2006/112/EC)  except  where  the  taxable  person 
makes use of the special schemes in Chapter 6 of Title XII of Directive 2006/112/EC.’ 

Article 2 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

The Regulation shall apply from 1 January 2021.  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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