Proposal for a COUNCIL REGULATION amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age
Date: 2022-12-08
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: European tax cooperation, VAT, administrative cooperation, digital economy, exchange of information, fraud, information system, intra-EU trade, tax offence

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   EUROPEAN COMMISSION  Brussels, 8.12.2022  COM(2022) 703 final 2022/0409 (CNS)  Proposal for a COUNCIL REGULATION amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age {SEC(2022) 433 final} - {SWD(2022) 393 final} - {SWD(2022) 394 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

This proposal is part of the package of legislation on the VAT in the  Digital Age initiative, 
together  with  a  proposal  for  a  Council  Directive  on  amending  Directive  2006/112/EC  as 
regards  VAT  rules  for  the  digital  age1,  and  the  proposal  for  a  Council  implementing 
Regulation  amending  Council  Implementing  Regulation  (EU)  No  282/2011  as  regards 
information requirements for certain VAT schemes2. The context of this initiative as a whole 
is  set  out  comprehensively  in  the  explanatory  memorandum  for  the  proposal  for  a  Council 
Directive amending Directive 2006/112/EC3.  

This explanatory memorandum describes modifications required to Council Regulation (EU) 
No  904/2010  on  administrative  cooperation  and  the  fight  against  fraud  in  the  field  of  VAT 
stemming from changes to the VAT Directive. 

The  proposal  to  amend  Council  Regulation  (EU)  No  904/2010  is  an  important  part  of  the 
package. The VAT in the Digital Age package modernises the way cross-border transactions 
within  the  single  market  are  reported  for  VAT  purposes  to  make  use  of  well-established 
technology  and  address  VAT  fraud.  The  current  way  of  collecting  aggregated  data  through 
recapitulative  statements4  and  exchanging  data  through  the  VAT  Information  Exchange 
System has been in use since the introduction of the single market in 1993. It is no longer fit 
for purpose in light of the scale of cross-border transactions and the level of VAT fraud. The 
amended  VAT  Directive  replaces  recapitulative  statements  with  new,  transaction-based 
reporting obligations. To complement these changes, the amended Regulation provides for the 
necessary  practical  rules  on  how  these  newly  collected  data  will  be  exchanged  between 
Member States, the IT infrastructure required, and  the personal data protection rules that will 
govern  the  new  exchanges.  These  details  are  necessary  to  ensure  that  the  new  rules  are 
implemented smoothly and that the new measures can reduce VAT fraud. 

Following  the  structure  of  the  VAT  in  the  Digital  Age  initiative  the  following  parts  of  the 
package should be noted: 

This package has three main objectives: 

(1) 

(2) 

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Modernising  VAT  reporting  obligations5,  by  introducing  Digital  Reporting 
Requirements, which will standardise the information that needs to be submitted by 
taxable persons on each transaction to the tax authorities in an electronic format. At 
the same time it will impose the use of e-invoicing for cross-border transactions; 

Addressing  the  challenges  of  the  platform  economy6,  by  updating  the  VAT  rules 
applicable to the platform economy in order to address the issue of equal treatment, 

Please include reference when available. 
Please include reference when available. 
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). 
A  recapitulative  statement  is  a  simple  form  submitted  on  a  monthly/quarterly  basis  by  traders,  in 
addition  to  their  VAT  return,  to  declare  goods  delivered  and  services  provided  to  traders  in  other 
Member States, containing the VAT number of the customers and the aggregated value of supplies per 
customer during a given period. 
VAT  reporting  obligations  refer  to  the  obligation  of  VAT-registered  businesses  to  make  periodic 
declarations of their transactions to the tax authority to allow monitoring the collection of VAT. 
In this respect, the term ‘platform economy’ relates to supplies of services made via a platform. 

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clarifying the place of supply rules applicable to these transactions and enhancing the 
role  of  the  platforms  in  the  collection  of  VAT  when  they  facilitate  the  supply  of 
short-term accommodation rental or passenger transport services; and 

(3) 

Avoiding  the  need  for  multiple  VAT  registrations  in  the  EU  and  improving  the 
functioning  of  the  tool  implemented  to  declare  and  pay  the  VAT  due  on  distance 
sales of goods7, by introducing Single VAT Registration (SVR). That is, improving 
and expanding the existing systems of One-Stop Shop (OSS)/Import One-Stop Shop 
(IOSS)  and  reverse  charge  in  order  to  minimise  the  instances  for  which  a  taxable 
person is required to register in another Member State. 

• 

Consistency with existing policy provisions in the policy area 

This proposal is part of the package of legislation on the VAT in the digital age initiative. The 
consistency  of  the  package  as  a  whole  is  set  out  comprehensively  in  the  explanatory 
memorandum of the proposal for a Council Directive amending Directive 2006/112/EC8. 

• 

Consistency with other Union policies 

This proposal is part of the package of legislation on the VAT in the digital age initiative. The 
consistency  of  the  package  as  a  whole  is  set  out  comprehensively  in  the  explanatory 
memorandum of the proposal for a Council Directive amending Directive 2006/112/EC. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This Regulation amends Council Regulation (EU) No 904/2010 on the basis of Article 113 of 
the Treaty on the Functioning of the European Union. 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)  

Member  States  are  primarily  responsible  for  VAT  management,  collection  and  control. 
However, VAT fraud is often linked to cross-border transactions within the single market or 
involves traders established in Member States other than the one in which VAT is due. VAT 
fraud  adversely  affects  how  the  single  market  functions  and  causes  severe  losses  to  the  EU 
budget.  

The  EU  cooperation  instruments  which  allow  the  exchange  of  information  between  tax 
administrations  are indispensable for the proper  control of cross-border transactions and the 
fight against VAT fraud.  

This initiative is consistent with the principle of subsidiarity, as the objectives sought by the 
present  initiative  cannot  be  achieved  by  the  Member  States  themselves.  Therefore,  it  is 
necessary  for  the  Commission,  which  is  responsible  for  ensuring  the  smooth  functioning  of 
the single market and for promoting the general  interests of the European Union, to propose 
action to improve the situation.  

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https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en 
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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This cannot be done solely at Member State level or using non-legislative instruments. Acting 
at EU level in relation to administrative cooperation instruments would offer value over and 
above what can be achieved nationally, requiring amendments to Council Regulation (EU) No 
904/2010 on administrative cooperation and combating fraud in the field of value added tax. 

• 

Proportionality 

The proposal is largely based on the current legal framework for administrative cooperation in 
the field of VAT and adds elements to it only where the framework needs strengthening. All 
measures  proposed  have  been  designed  to  meet  the  new  digital  reporting  requirements  and 
Member States’ needs.  While they are expected to have positive effects  on the fight against 
VAT fraud, the new provisions would not entail any significant additional costs for business 
and administrations, except for certain IT developments for tax administrations. Even in these 
instances, the associated development costs would remain limited. 

A central electronic system for VAT information (‘the central VIES’) would be set up. It will 
allow Member States to transmit VAT information they store at national level, helping to fight 
VAT  fraud  effectively.  The  central  VIES  would  be  able  to  aggregate  per  taxable  person 
information  on  cross-border  business-to-business  (B2B)  transactions  transmitted  by  the 
Member States. It will also allow the reported intra-Community supplies to be cross-checked 
with  intra-Community  acquisitions  data  that  has  been  transmitted.  It  will  also  allow  the 
information  transmitted  by  the  Member  States  to  be  processed  with  other  VAT  information 
exchanged under Regulation (EU) No 904/2010, such as customs or payment data, and retain 
this information only for the period necessary for tax authorities to carry out VAT controls.  

Information will be retained in the central VIES for a period of 5 years, to provide Member 
States with a reasonable period of time to carry out VAT audits. After this period the data will 
be definitively erased. 

The central VIES would only be accessible to authorised officials appointed by their Member 
States, and for the purposes of the control of the correct application of VAT legislation and 
combating VAT fraud. In terms of storage, the central VIES would guarantee an appropriate 
level  of security,  in  line  with  the rules governing the processing of personal  information  by 
the EU’s institutions. 

The exchange of information between national tax authorities and the central VIES will take 
place through a secure common communication network. This currently supports exchanges 
of  information  between  tax  and  customs  authorities,  and  provides  all  the  necessary  security 
features (including encryption of information). 

This  proposal,  therefore,  will  continue  to  apply  the  safeguards  laid  down  under  Regulation 
(EU) No 904/2010 and the European framework on data protection. The overall purpose for 
exchanging  and  analysing  this  VAT-relevant  information  remains  ensuring  the  correct 
application  of  VAT  legislation  and  combating  VAT  fraud.  Fighting  VAT  fraud  is  an 
important objective of general public interest for the EU and its Member States, as referred to 
in  Article  23(1)(e)  of  the  General  Data  Protection  Regulation  and  in  Article  20(1)(b)  of 
Regulation (EU) 2018/1725. In order to support that important objective and the effectiveness 
of the tax authorities in pursuing that objective, the restrictions laid down in Article 55(5) of 
Regulation (EU) No 904/2010 will apply to the central VIES. 

The  new  provisions  do  not  go  beyond  what  is  strictly  necessary  to  make  administrative 
cooperation instruments more effective in verifying cross-border transactions and enhancing 
the fight against VAT fraud in light of the proposed digital reporting requirements and other 
changes introduced in the VAT in the Digital Age package. 

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Choice of the instrument 

A Council Regulation is needed to amend current Regulation (EU) No 904/2010. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EVALUATIONS, 

POST 

OF 

EX 

STAKEHOLDER 

Ex post evaluations/fitness checks of existing legislation 

An  evaluation  of  the  use  of  the  existing  EU  framework  for  administrative  cooperation  and 
combating VAT fraud provided for in Regulation (EU) No 904/2010 was carried out in 20179. 
Overall,  the  Member  States  take  a  positive  view  of  the  legal  and  practical  framework 
implemented with Regulation (EU) No 904/2010.  

Changes to the administrative cooperation legal framework are needed following the changes 
to  reporting  requirements  for  cross-border  transactions  in  the  VAT  Directive.  The 
introduction of new digital reporting requirements significantly increases the amount of data 
that  will  need  to  be  exchanged  between  Member  States  and  the  frequency  of  exchanges. 
Therefore,  a  new  part  is  being  introduced  to  the  Regulation  under  Chapter  V:  Storage  and 
exchange of specific information which will allow these exchanges through a new electronic 
system called the central VIES. 

• 

Stakeholder consultations 

Extensive 
memorandum of the proposal to amend the VAT Directive. 

information  on  stakeholder  consultations 

is  provided 

in 

the  explanatory 

Two  Fiscalis  workshops  were  organised  to  gather  feedback  from  Member  States  on  the 
adaptation  of  the  VAT  administrative  cooperation  framework  to  support  the  new  digital 
reporting requirements. The first workshop, which took place in November 2021, gathered the 
opinions  of  VAT  anti-fraud  experts  and  Eurofisc  liaison  officials.  The  second  workshop  in 
April 2022 focussed on the heads of the competent liaison offices of Member States. In both 
instances,  Member  State  representatives  underlined  the  importance  of  the  new  digital 
reporting  requirements  when  accompanied  by  an  appropriate  system  for  exchanging  VAT 
information.  It  was  seen  that  there  was  a  clear  need  for  automatic  cross-checking  of  DRR 
data, e.g. reported supplies with acquisitions. There was also a broad consensus that a central 
system  to  facilitate  the  joint  processing  and  analysis  of  information  would  be  the  preferred 
approach  guaranteeing  a  uniform  implementation  of  cross-checks  and  interpretation  of  the 
results. 

• 

Collection and use of expertise 

This proposal is part of the package of legislation on the VAT in the digital age initiative. The 
collection and use of expertise for the package as a whole is set out comprehensively in the 
explanatory  memorandum  of  the  proposal  for  a  Council  Directive  amending  Directive 
2006/112/EC. 

• 

Impact assessment 

This proposal is part of the package of legislation on the VAT in the digital age initiative. The 
impact assessment is provided for the package as a whole in the explanatory memorandum of 
the proposal for a Council Directive amending Directive 2006/112/EC. 

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Commission Staff Working Document SWD(2017) 428 final. 

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Regulatory fitness and simplification 

This  proposal  is  part  of  the  package  of  legislation  on  the  VAT  in  the  digital  age  initiative. 
Extensive information on Regulatory fitness and simplification is provided in the explanatory 
memorandum of the proposal for a Council Directive amending Directive 2006/112/EC. 

• 

Fundamental rights 

This proposal is expected to trigger exchange and joint processing of VAT information, which 
could  include  personal  data.  However,  the  data  collected  under  the  new  digital  reporting 
requirements  and  subsequently  exchanged  via  the  central  VIES  system  would  be  limited  to 
intra-Community  business-to-business  transactions  and  will  not  cover  business-to-consumer 
transactions.  The  principle  of  data  minimisation  has  also  been  applied.  Therefore  the  data 
collected and subsequently exchanged relate only to a subset of the information contained in 
an  invoice.  This  minimum  data  set  which  is  required  for  the  purposes  of  monitoring  the 
correct application of VAT and for combating VAT  fraud is specified by the amendment to 
Article  264  in  the  accompanying  proposal  for  a  Council  Directive  amending  Directive 
2006/112/EC.  However  protecting  personal  data  and  complying  with  Regulations  (EU) 
2016/67910  and  (EU)  2018/1725  remain  a  priority,  even  where  the  information  to  be 
processed is limited. As a result, the following provisions are being proposed:  

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The  data  in  the  central  VIES  will  only  be  kept  for  5  years  which  is  the  minimum  
time  necessary  for  analysis  and  investigations  by  national  tax  authorities  who  are 
empowered to enforce VAT obligations (data retention).  

The  data  in  the  central  VIES  will  be  protected  as  set  out  in  Article  55(1)  of 
Regulation (EU) No 904/2010. 

The data in the central VIES  will be used for clearly identified and limited purposes, 
notably to correctly assess VAT, to monitor the correct application of VAT, and to 
combat  VAT  fraud  as  laid  down  in  Article  1  of  Regulation  (EU)  No  904/2010.  In 
particular  the  data  will  be  used  to  carry  out  risk  assessments  to  identify  potential 
fraudsters at an early stage and to put an end to fraudulent networks whose purpose is 
to abuse the VAT system by carrying out VAT fraud. 

Users  who  can  access  the  data  in  the  central  VIES  will  be  limited  to  authorised 
personnel from Member States, in respect of the need-to-know principle. 

The  central  VIES  will  be  hosted,  maintained  and  technically  managed  by  the 
Commission, which has the operational capacity and experience to ensure  technical 
and  organisational  security  measures  are  put  in  place  to  protect  personal  data.  An 
implementing  act  will  set  out  the  tasks  to  be  carried  out  by  the  Commission  in 
relation to technically managing the central VIES . 

An implementing act will set out the roles and responsibilities of the Member States 
and the Commission when acting as controller and processor under Regulations (EU) 
2016/679 and (EU) 2018/1725 . 

In addition, these measures are subject to Article 8 of the Charter of Fundamental Rights. 

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Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27 April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC 

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4. 

BUDGETARY IMPLICATIONS 

The  budgetary  implications  are  set  out  in  detail  in  the  explanatory  memorandum  of  the 
proposal for a Council Directive amending Directive 2006/112/EC. 

The  proposal  will  lead  to  limited  costs  for  national  administrations  and  the  EU  budget  for 
putting the enhanced VAT information exchange system (VIES) in place. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  Standing  Committee  on  Administrative  Cooperation  (SCAC),  established  under  Article 
58(1)  of  the  Council  Regulation  (EU)  No  904/2010,  will  deal  with  all  possible  issues 
regarding administrative co-operation between Member States resulting from the new rules on 
the  taxation  of  intra-EU  trade.  In  particular,  an  implementation  plan  will  be  established 
together  with  the  Member  States  in  SCAC,  for  the  necessary  IT  changes11  once  the 
modification is adopted by the Council.  

Pursuant  to  Article  59  of  Regulation  (EU)  No  904/2010,  the  Regulation’s  application  is 
reviewed every five years. In addition, under Article 49, to evaluate how well administrative 
cooperation is combating tax evasion and avoidance, Member States must communicate to the 
Commission any available information relevant to the application of the Regulation and, inter 
alia, annual statistics about the use of the cooperation instruments. 

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N/A 

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1. 

Explanatory documents (for directives) 

Detailed explanation of the specific provisions of the proposal 

INTRODUCING A CENTRAL SYSTEM FOR THE EXCHANGE OF VAT INFORMATION  

A first set of amendments in the proposal deals with the development of a new central system 
for  the  exchange  of  VAT  information  between  Member  States’  tax  administrations  at  EU 
level that is adapted to the specificities of Digital Reporting Requirements. Section 3 is added 
to Chapter V of Regulation (EU) 904/2010 to introduce the central VIES with Articles 24g to 
24m as follows: 

 

Article 24g establishes the central VIES system by determining that the Commission 
shall develop, maintain, host and technically manage the central system, while each 
Member  State  shall  develop,  maintain,  host  and  technically  manage  a  national 
electronic system to automatically transmit different categories of information to the 
central  VIES.  The  most  essential  part  of  information  exchanged  through  central 
VIES  will  be  the  information  collected  through  the  DRR.  The  other  information 
relates to the identification of the taxable persons. Finally it is explicitly mentioned 
that Member States may store the information they have to automatically transmit to 
the central VIES in the national electronic system which they use for transmitting the 
information for the purposes of reuse in national controls. 

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IT  development  and  procurement  strategy  choices  will  be  subject  to  pre-approval  by  the  European 
Commission Information Technology and Cybersecurity Board. 

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Article 24h relates to data quality and availability. Exchanging information will only 
be of value if the data is of sufficient quality. To this end, Member States shall make 
all  necessary  updates  and  adopt  measures  in  order  to  ensure  that  the  central  VIES 
data is kept up-to-date, and is complete and accurate. For the information to be up-to-
date,  new  or  updated  information  should  be  entered  into  the  system  without  delay. 
This  immediate  update  of  information  is  particularly  important  for  identification 
information,  which  is  intrinsically  linked  with  VAT  number  validation.  As  for  the 
intra-Community  transaction  reports,  gathered  through  the  DRR,  the  acceptable 
delay to be entered into the central VIES is within one day after the collection by the 
tax  administration.  The  cross-checking  of  information  reported  by  a  supplier  and 
their client can only take place after the information is reported by both parties and 
after each authority transmits it to the central VIES. This means that the acceptable 
delay  for  each  step  should  remain  at  the  level  of  a  few  days  for  an  analysis  to  be 
possible  on  a  sufficiently  frequent  basis.  The  information  shall  remain  available  in 
central  VIES  for  five  years  from  the  end  of  the  year  in  which  the  information  was 
transmitted to the central VIES. 

Article  24i  is  about  showing  VAT  identification  information  as  invalid  within  the 
central VIES, once certain conditions are met. The provision comes into effect where 
persons  identified  for  VAT  purposes  have  ceased  their  economic  activity,  declared 
false  data  in  order  to  obtain  a  VAT  identification  number  or  have  failed  to 
communicate  changes  to  their  data  which,  had  the  tax  administration  known,  they 
would  have  either  refused  or  withdrawn  the  VAT  identification  number.  This 
provision is of huge importance with regard to the objective of fighting VAT fraud 
effectively.  It  should  be  underlined  that  this  provision  is  only  about  showing  the 
VAT  identification  number  as  invalid  in  a  few  situations.  It  doesn’t  mandate  when 
Member States should withdraw the VAT identification number. 

Article 24j describes the capabilities that the central VIES shall have with regard to 
the information transmitted to it. The article provides that the central VIES shall be 
able to store, as well as cross-check, aggregate and process the information received. 
Furthermore, the central VIES shall be able to make the information (received, cross-
checked, aggregated and processed) accessible to authorised users and systems. The 
central  VIES  should  also  be  able  to  process  information  together  with  any 
information  communicated  or  collected  pursuant  to  Council  Regulation  (EU)  No 
904/2010 for control purposes and for combating VAT fraud. A prominent example 
is  cleaning  and  enriching  the  data  by  processing  it  together  with  data  from  other 
systems,  such  as  the  Surveillance  system  which  contains  information  on  VAT 
exempt importations using Customs Procedures 42/63. This capability is necessary to 
build  synergies  between  different  information  systems  containing  VAT  relevant 
information and maximise the impact of investments in such systems. 

Article  24k  describes  which  officials  and  systems  are  provided  with  automated 
access to the central VIES. These include the Member State officials who check the 
requirements for VAT exempt importation of goods, Eurofisc liaison officials as well 
as  any  other  officials  who  are  explicitly  authorised  by  the  competent  authority  of 
their  Member  State.  Finally,  access  to  the  collected  and  processed  information  is 
foreseen  for  the  national  electronic  systems  which  transmit  the  information  to  the 
central VIES. This provision allows for a secure machine-to-machine communication 
channel facilitating automation and relieving the need for human intervention. 

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Article  24l  deals  with  the  costs  for  development  and  maintenance  of  the  central 
VIES, as it determines that the costs for establishing, operating and maintaining the 
central  VIES  shall  be  borne  by  the  general  budget  of  the  Union.  These  costs  shall, 
amongst others, include those of the secure connection between central VIES and the 
national  electronic  systems  referred  to  in  Article  24g(2),  and  those  of  the  services 
necessary  to  carry  out  the  capabilities  which  are  listed  in  Article  24j.  On  the  other 
hand,  each  Member  State  shall  bear  the  costs  of  and  shall  be  responsible  for  all 
necessary developments to its national electronic systems to permit the exchange of 
information using the CCN network, or any other similar network. 

Finally,  Article  24m  relates  to  the  security  and  compliance  of  the  central  VIES 
system.  The  first  paragraph  determines  that  the  Member  States  shall  take  all 
measures necessary to ensure compliance with Article 55 of this Regulation. Article 
55  provides  obligations  with  regard  to  official  secrecy,  privacy  and  security  of  the 
information  stored,  processed  or  exchanged  under  the  Regulation.  The  second 
paragraph empowers the Commission to adopt, by means of implementing acts: the 
tasks to be carried out by the Commission for technically managing the central VIES 
and  the  roles  and  responsibilities  of  the  Member  States  and  the  Commission  as 
regards the functions of controller and processor under Regulation (EU) 2016/679 of 
the European Parliament and of the Council and Regulation (EU) 2018/1725 of the 
European Parliament and of the Council. 

2. 

PHASING  OUT  THE  EXISTING  LEGACY  SYSTEM  FOR  THE  EXCHANGE  OF  VAT 
INFORMATION 

A second set of amendments in the proposal deals with the phase out of the legacy VIES. The 
existing VIES system, covered by Section 1 of Chapter V, needs to be retained for two years 
after  establishing  the  central  VIES  system  in  order  to  facilitate  the  controls  of  transactions 
which  were  reported  with  recapitulative  statements,  prior  to  the  introduction  of  the  Digital 
Reporting Requirements. The legacy VIES will allow the automatic exchange of information 
provided via the old reporting requirements for this period. After phasing out the legacy VIES 
the  information  could  still  be  exchanged  between  Member  States  spontaneously  or  upon 
request, using non-automated instruments of administrative cooperation. The phase out of the 
existing VIES is performed as follows: 

 

 

Articles 17, 20, 21, 22 and 23 are amended so that the references of the legacy VIES 
are removed. 

Article  31  which  deals  with  the  provision  of  information  to  taxable  persons  on  the 
validity  of  the  VAT  identification  numbers  as  well  as  the  associated  name  and 
address of other persons involved in intra-Community transactions is amended. After 
the amendment the Article will refer to the information kept in the central VIES. 

3. 

OTHER CHANGES 

A third set of amendments in the proposal provides for the necessary adjustments concerning 
the  exchange  of  information  related  to  the  new  special  transfers  of  own  goods  scheme  as 
introduced in Directive 2006/112/EC.  

Under  Article  242a  of  Directive  2006/112/EC  platform  operators  are  required  to  keep  the 
records  of  business  to  customer  supplies  made  on  their  platforms.  In  order  to  facilitate  the 
operation  of  the  deemed  supplier  model  being  introduced  in  the  short-term  accommodation 

EN 

8 

  EN 

rental and passenger transport sectors, this shall be broadened to business to business supplies. 
It is necessary to introduce a standard format for the transfer of this information.  

EN 

9 

  EN 

2022/0409 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation 
arrangements needed for the digital age 

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) 

Council  Regulation  (EU)  No  904/20103  lays  down  the  conditions  under  which  the 
competent authorities in the Member States responsible for the application of the laws 
on  VAT  are  to  cooperate  with  each  other  and  with  the  Commission  to  ensure 
compliance  with  those  laws.  Those  conditions  entail,  amongst  others,  rules  on  the 
storage and exchange, through electronic means, of information that may help to effect 
a correct assessment of VAT, monitor the correct application of VAT, particularly on 
intra-Community transactions, and combat VAT fraud. 
Council Directive (EU) XX/XXX4 [OP please insert number and year of the Council 
Directive  amending  Directive  2006/112/EC  as  regards  VAT  rules  for  the  digital  age 
adopted  the  same  day  as  this  Regulation]  introduced  into  Council  Directive 
2006/112/EC5    digital  reporting  requirements  (‘DRR’).  Those  requirements  oblige 
taxable persons identified for VAT purposes to submit to Member States information 
on  each  intra-Community  supply  of  goods,  on  each  intra-Community  acquisition  of 
goods and on each supply of a service that is taxable in a Member State other than the 
one in which the supplier is established. Member States need to exchange and process 
that information on intra-Community transactions to monitor the correct application of 
VAT and to detect fraud. 

1 
2 
3 

4 
5 

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 (EU) XXX/XXXX of ........ (OJ L., dd/mm/yy, p. X). [OP Please insert full ref.] 
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). 

EN 

10 

  EN 

                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

The  existing  cooperation  between  Member  States’  tax  authorities  is  based  on 
information  between  national  electronic  systems.  The 
exchanging  aggregated 
introduction  of  DRR  aims  to  increase  tax  collection  by  providing  transaction-by-
transaction  data  to  tax  administrations  in  a  timely  manner.  To  make  those  data 
available  to  other  tax  administrations  in  an  efficient  manner,  and  to  facilitate  a 
common  implementation  of  analysis  and  crosschecks,  as  well  as  a  common 
interpretation  of  those  analyses  and  crosschecks,  a  central  system  where  VAT 
information is shared is necessary. 

In  order  to  enable  Member  States  to  fight  VAT  fraud  more  effectively,  a  central 
electronic  VAT  information  exchange  system  (‘central  VIES’)  for  sharing  VAT 
information  should  be  established.  That  system  should  receive,  from  national 
electronic systems of Member States information about intra-Community transactions 
as reported by the respective suppliers and acquirers in different Member States. That 
system should also receive from Member States the VAT identification information of 
taxable  persons  making  intra-Community  transactions.  Furthermore,  whenever  data 
are changed, the metadata for tracking the modification time should be uploaded into 
the central VIES as well. 

The  VAT  identification  information  of  taxable  persons  making  intra-Community 
transactions  should  be  automatically  updated  in  the  central  VIES  without  delay 
whenever identification information changes, except where Member States agree that 
such  update  is  not  pertinent,  essential  or  useful.  Such  updates  are  necessary  because 
the  validity  of  the  VAT  identification  numbers  of  taxable  persons  is  subject  to 
verification as regards the condition for exempting intra-Community supplies provided 
for  in  Article  138  of  Directive  2006/112/EC.  To  provide  a  reasonable  level  of 
assurance  to  tax  administrations  with  regard  to  the  quality  and  reliability  of  such 
information,  information  on  intra-Community  transactions  should  be  automatically 
updated in  the central  VIES no later than  1 day  after the Member State received the 
information from the taxable person. 

Furthermore,  with  regard  to  VAT  identification  information  in  the  central  VIES, 
Member  States  should  adopt  measures  to  ensure  that  the  data  provided  by  taxable 
persons  for  their  identification  for  VAT  purposes  in  accordance  with  Article  214  of 
Directive 2006/112/EC, are assessed by the respective Member State as  complete and 
accurate. Moreover, Member States should ensure that the VAT identification number 
is  shown  as  invalid  in  the  central  VIES  where  a  taxable  person  fails  to  respect  the 
obligations to communicate data or the economic activity is ceased. 

The  information  on  intra-Community  transactions  reported  by  the  suppliers  and 
acquirers in different Member States should be entered by each Member State into the 
central  VIES  promptly  after  the  Member  State  received  it.  It  is  necessary  to  process 
the  information  received  quickly,  for  technical  reasons  related  to  the  data  volume  as 
well as to detect suspicious transactions and possible cases of VAT fraud early. 

identification 

information  and  VAT 

To  assist  Member  States  in  their  fight  against  VAT  fraud  and  to  detect  fraudsters, 
VAT 
intra-Community 
transactions  should  be  retained  for  5  years.  That  period  constitutes  the  minimum 
period  necessary  for  Member  States  to  carry  out  controls  effectively  and  investigate 
suspected  VAT  fraud  or  detect  such  fraud.  It  is  also  proportionate  considering  the 
massive volume of the intra-Community transaction information and the sensitivity of 
the information as commercial and personal data. 

information  on 

EN 

11 

  EN 

(9) 

To detect mismatches in a timely manner and thereby improve the capability to fight 
VAT  fraud,  the  central  VIES  should  be  able  to  automatically  cross-check  the 
information collected from both the supplier and acquirer through the DRR introduced 
by  Directive  (EU)  XX/XXX  [OP  please  insert  number  and  year  of  the  Council 
Directive  amending  Directive  2006/112/EC  as  regards  VAT  rules  for  the  digital  age 
adopted the same day as this Regulation6]. The results of such cross-checking should 
be made available to Member States for the appropriate follow-up. 

(10)  Furthermore,  to  allow  the  central  VIES  to  maintain  the  capabilities  of  the  existing 
VAT  information  exchange  system  provided  for  in  Article  17(1),  point  (a),  of 
Regulation  (EU)  No  904/2010,  it  should  also  be  able  to  aggregate  information  to 
provide an overview of supplies and acquisitions reported by taxable persons located 
in Member States. To ensure that the central VIES permits Member States to continue 
accessing  each  other's  information  as  currently  structured  within  the  existing  VAT 
information exchange system, the central VIES should  support data aggregation. 

(11)  To support the competent authorities of Member States to effect a correct assessment 
of VAT, monitor the correct application of VAT, combat VAT fraud, and exploit the 
synergies  between  different 
relevant 
information,  the  central  VIES  should  process  information  received  from  Member 
States  together  with  any  information  communicated  or  collected  pursuant  to 
Regulation (EU) No 904/2010. 

information  systems  containing  VAT 

(12)  Access to the information in the central VIES should be provided on a need-to-know 
basis.  That  information  should  not  be  used  for  other  purposes  than  to  monitor  the 
correct application of VAT and combat VAT fraud. All users should be bound by the 
confidentiality rules laid down in this Regulation. 

(13)  To fight VAT fraud, Member States’ Eurofisc liaison officials as referred to in Article 
36  of  Regulation  (EU)  No  904/2010  should  be  able  to  access  and  analyse  VAT 
information  on  intra-Community  transactions.  To  monitor  the  correct  application  of 
VAT  laws,  Member  States’  officials  who  check  whether  the  exemption  of  VAT  for 
certain  imported  goods,  which is  laid down in  Article 143(1), point (d),  of Directive 
2006/112/EC,  applies,  should  also  be  able  to  access  VAT  identification  information 
that  is  stored  in  the  central  VIES.  Moreover,  for  the  same  reasons,  Member  States’ 
competent  authorities  should  select  other  officials  who  need  to  have  direct  access  to 
the  central  VIES  and  grant  them  such  access  where  needed.  Finally,  duly  accredited 
persons of the Commission should be able to access the information contained in the 
central VIES, but only to the extent that such access is necessary for the development 
and maintenance of that system. 

(14)  To investigate suspected VAT fraud and to detect such fraud, the information systems 
supporting  the  Eurofisc  network  in  the  fight  against  VAT  fraud,  including  the 
Transaction  Network  Analysis  system  and  the  central  electronic  system  of  payment 
information (“CESOP”), should have direct access to the central VIES. 

(15)  The data volume and the frequency of data transmissions to the central  VIES render 
the  automation  of  the  information  flows  from  the  central  VIES  to  national  systems 
necessary. Such automation should also provide for an efficient and secure machine-
to-machine communication channel, and should ensure that there is no longer a need 
for  human  intervention  when  accessing  shared  data.  National  electronic  systems  that 

6 

Council Directive (EU) XXX/XXXX of ........ (OJ L., dd/mm/yy, p. X). 

EN 

12 

  EN 

                                                 
(16) 

transmit  information  to  the  central  VIES  should  therefore  also  have  access  to  the 
information stored in that system, including the processed and aggregated information 
for VAT control purposes and for the fight against VAT fraud. 

In order to ensure uniform conditions for the implementation of Regulation (EU) No 
904/2010, implementing powers should be conferred on the Commission in respect of 
the  tasks  to  be  carried  out  by  the  Commission  for  technically  managing  the  central 
VIES,  the  technical  details  concerning  the  identification  and  access  of  officials  and 
electronic  systems  to  the  central  VIES,  the  technical  details  and  format  of  the 
information  transmitted  to  the  central  VIES    and  the  roles  and  responsibilities  of 
Member  States  and  the  Commission  when  acting  as  controller  and  processor  under 
Regulations (EU) 2016/6797 and (EU) 2018/17258 of the European Parliament and of 
the  Council.  Those  powers  should  be  exercised  in  accordance  with  Regulation  (EU) 
No 182/2011 of the European Parliament and of the Council9. 

(17)  VAT fraud is a common problem for all Member States. Member States alone do not 
have the information necessary to ensure that the VAT rules are correctly applied and 
to  tackle VAT fraud. Since the objective of  Regulation  (EU) No 904/2010,  the fight 
against VAT fraud, cannot be sufficiently achieved by the Member States because of 
the  cross-border  nature  of  the  internal  market,  but  can  be  better  achieved  at  Union 
level, the Union may adopt measures, in accordance with the principle of subsidiarity 
as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the 
principle  of  proportionality,  as  set  out  in  that  Article,  this  Regulation  does  not  go 
beyond what is necessary in order to achieve that objective. 

(18)  Taxable  persons  facilitating  supplies  of  goods  or  services  through  the  use  of  an 
electronic  interface  may  be  subject  to  requests  for  records  from  the  Member  State 
where  those  supplies  are  taxable  as  referred  to  in  Article  242a  of  Directive 
2006/112/EC.  To  reduce  the  administrative  burden  and  compliance  costs  for  those 
taxable persons and to avoid duplication of work, the Member State of identification 
should coordinate such requests as much as possible. For that purpose, it is necessary 
to  lay  down  a  standard  form  for  the  electronic  transmission  of  this  information  to 
Member States. 

(19)  A  new  One-Stop-Shop  (‘OSS’)  simplification  scheme  is  to  be  introduced  into 
Directive  2006/112/EC  for  taxable  persons  who  are  transferring  certain  own  goods 
cross-border.  It  is  therefore  necessary  to  integrate  that  new  scheme  in  the  overall 
framework  of  the  VAT  OSS  special  schemes  set  out  in  Chapter  XI,  Section  3,  of 
Regulation  No  904/2010.  It  should  notably  include  the  provision  of  information 
between the Member State from and to which the goods are transferred. 

7 

8 

9 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27 April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, 
p. 1). 
Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the 
protection of natural persons with regard to the  processing of personal data by the Union institutions, 
bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 
45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39). 
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). 

EN 

13 

  EN 

                                                 
(20)  As the new OSS scheme is comprehensive and encompasses cross-border movements 
of goods that are currently covered by call-off stock arrangements in accordance with 
Article  17a  of  Directive  2006/112/EC,  those  arrangements  have  been  deleted  from 
Directive 2006/112/EC. It is necessary that that amendment of Directive 2006/112/EC 
is reflected in Article 21 of Regulation (EU) No 904/2010. 

(21)  The  abuse  of  Import  One-Stop-Shop  (‘IOSS’)  VAT  identification  numbers  has  been 
identified by stakeholders as a potential risk. To better secure the correct use and the 
verification  process  of  IOSS  VAT  identification  numbers,  it  is  necessary  to  extend 
Article  47h  of  Regulation  (EU)  No  904/2010  granting  customs  authorities  access  to 
information about the IOSS registered trader, which will improve the risk management 
and control capabilities of those customs authorities. 

(22)  To  enhance  controls  in  relation  to  the  IOSS  scheme,  it  is  necessary  to  add  the  total 
value of the goods imported under the IOSS scheme per IOSS identification number 
per Member State of consumption to Article 17(1), point (e), of Regulation (EU) No 
904/2010. 

(23)  The  technical  details,  including  common  electronic  messages,  for  the  submission  of 
records  by  the  taxable  persons  facilitating  supplies  through  the  use  of  an  electronic 
interface as referred to in Article 242a of Directive 2006/112/EC should be adopted in 
accordance with the comitology procedure provided for in this Regulation. 

(24)  This Regulation respects the fundamental rights and observes the principles recognised 
by  the  Charter  of  Fundamental  Rights  of  the  European  Union.  In  particular,  this 
Regulation seeks to ensure full respect for the right of protection of personal data laid 
down  in  Article  8  of  the  Charter.  In  that  regard,  this  Regulation  strictly  limits  the 
amount  of  personal  data  that  will  be  made  available  to  the  tax  authorities.  The 
processing  of  intra-Community  transaction  information  pursuant  to  this  Regulation 
should only occur for the purposes of this Regulation. 

(25)  The  European  Data  Protection  Supervisor  was  consulted  in  accordance  with  Article 

42(1) of Regulation (EU) 2018/1725 and delivered an opinion on […] 

(26)  As  the  implementation  of  the  central  VIES  system  will  require  new  technological 
developments,  it is  necessary to  defer the application of the provisions related to  the 
central  VIES  to  allow  Member  States  and  the  Commission  to  develop  these 
technologies. 

(27)  Automated  access  to  information  on  intra-Community  transactions  which  have  been 
reported  via  recapitulative  statements  is  directly  affecting  the  efficiency  of  VAT 
controls.  Therefore  the  current  VAT  information  exchange  system  provided  for  in 
Article 17(1), point (a), of Regulation (EU) No 904/2010 should be maintained for a 
period  of  time  after  the  abolition  of  those  recapitulative  statements.  Beyond  that 
period,  the  relevant  provisions  of  the  current  VAT  information  exchange  system 
should  be  deleted  and  the  information  reported  via  recapitulative  statements  should 
still be accessible on request. 

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

HAS ADOPTED THIS REGULATION: 

Amendments to Regulation (EU) No 904/2010 applicable from 1 January 2025  

Article 1 

EN 

14 

  EN 

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

(1) 

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

‘4.  This  Regulation  also  lays  down  rules  and  procedures  for  the  exchange  by 
electronic  means  of  VAT  information  on  goods  and  services  supplied  or  goods 
transferred in accordance with the special schemes provided for in Title XII, Chapter 
6,  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: 

‘2.  The  definitions  contained  in  Articles  358,  358a,  369a,  369l  and  369xa  of 
Directive 2006/112/EC for the purposes of each special scheme shall also apply for 
the purposes of this Regulation.’; 

(3) 

in Article 17(1), points (d) and (e) are replaced by the following: 

‘(d)   information  which  it  collects  pursuant  to  Articles  360,  361,  364,  365, 
369c,  369f,  369g,  369o,  369p,  369s,  369t,  369xc,  369xf  and  369xg  of 
Directive 2006/112/EC; 

(e)   data  on  the  VAT  identification  numbers  referred  to  in  Article  369q  of 
Directive 2006/112/EC it has issued and per VAT identification number 
issued  by  any  Member  State,  the  total  value  of  the  imports  of  goods 
exempted  under  Article  143(1),  point  (ca),  during  each  month,  per 
Member  State  of  consumption  as  defined  in  Article  369l(4)  of  that 
Directive;’; 

(4) 

Article 47b is replaced by the following: 

‘Article 47b 

1.  Member  States  shall  provide  that  taxable  persons  making  use  of  the  special 
scheme  laid  down  in  Title  XII,  Chapter  6,  Section  2  of  Directive  2006/112/EC 
provide to the Member State of identification, by electronic means, the information 
laid down in Article 361 of that Directive. Taxable persons making use of the special 
schemes  laid  down  in  Title  XII,  Chapter  6,  Sections  3  and  5,  of  Directive 
2006/112/EC  shall  provide,  to  the  Member  State  of  identification,  by  electronic 
means,  details  for  their  identification  when  their  activities  commence  pursuant  to 
Articles 369c and 369xc of that Directive. Any changes in the information provided 
pursuant to Article 361(2), Article 369c and Article 369xc of Directive 2006/112/EC 
shall also 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  in  which  the  information  was 
received from the taxable person using one of the special schemes laid down in Title 
XII, Chapter 6, Sections 2, 3 and 5, of Directive 2006/112/EC. The Member State of 
identification shall in the same manner inform the competent authorities of the other 
Member States of the VAT identification numbers referred to in those Sections 2, 3 
and 5.  

 Where a taxable person making use of one of the special schemes laid down in 
3. 
Title XII, Chapter 6, Sections 2, 3 and 5, of Directive 2006/112/EC is excluded from 

EN 

15 

  EN 

that  special  scheme,  the  Member  State  of  identification  shall  inform  the  competent 
authorities  of  the  other  Member  States  thereof  by  electronic  means  and  without 
delay.’; 

(5) 

Article 47d is replaced by the following: 

‘Article 47d 

1.  Member  States  shall  provide  that  the  VAT  return  with  the  details  set  out  in 
Articles  365,  369g,  369t  and  369xg  of  Directive  2006/112/EC  are  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 authority of the Member State of 
consumption  or  the  Member  States  from  and  to  which  the  goods  have  been 
dispatched  or  transported  at  the  latest  20  days  after  the  end  of  the  month  during 
which the return was required to be submitted.’; 

(6) 

in Article 47h, the following paragraph is added: 

‘For  the  purposes  of  the  first  paragraph,  Member  States  shall  grant  competent 
authorities  access  to  the  information  referred  to  in  Article  369p  (1)  and  (3)    of 
Directive 2006/112/EC.’; 

(7) 

Article 47i is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

‘1.  To  obtain  the  records  held  by  a  taxable  person  or  intermediary  pursuant  to 
Articles 369, 369k, 369x and 369xk of Directive 2006/112/EC, the Member State of 
consumption or the Member State from or to which the goods have been dispatched 
or  transported  shall  first  make  a  request  to  the  Member  State  of  identification  by 
electronic means.’; 

(b)  paragraphs 4 and 5 are replaced by the following: 

‘4.  The  Member  State  of  identification  shall  transmit  the  records  obtained  by 
electronic  means,  without  delay  to  the  requesting  Member  State  of  consumption  or 
Member State from or to which the goods have been dispatched or transported. 

5.  Where the requesting Member State of consumption or Member State from or 
to which the goods have been dispatched or transported does not receive the records 
within 30 days of the date of the making of the request, that Member State may take 
any action in accordance with its national legislation to obtain such records.’; 

(8) 

in Article 47j, paragraph 2 is replaced by the following: 

‘2.  Without  prejudice  to  Article  7(4),  if  the  Member  State  of  consumption  or  the 
Member  State  from  or  to  which  the  goods  have  been  dispatched  or  transported 
decides  that  an  administrative  enquiry  is  required,  it  shall  first  consult  with  the 
Member State of identification on the need for such an enquiry.’; 

(9) 

in Article 47l, point (a) is replaced by the following: 

‘(a) 

the technical details, including a common electronic message, for providing the 
information referred to in Articles 47b(1), 47c(1), and 47d(1), and the standard 
form as referred to in Article 47i(3) and Article 47m;’; 

(10) 

the following Chapter XIa is inserted: 

EN 

16 

  EN 

‘CHAPTER XIa 

PROVISIONS CONCERNING RECORD KEEPING OBLIGATIONS FOR 
ELECTRONIC INTERFACES FACILITATING SUPPLIES OF GOODS OR 
SERVICES IN ACCORDANCE WITH ARTICLE 242A OF DIRECTIVE 2006/112/EC 

Article 47la 

1. 
To  obtain  the  records  held  by  a  taxable  person  pursuant  to  Article  242a  of 
Directive 2006/112/EC,  the Member State in which those supplies are taxable shall 
first make a request to the Member State in which a taxable person is identified for 
VAT purposes by electronic means.  

2.  Where  the  Member  State  in  which  a  taxable  person  is  identified  for  VAT 
purposes  receives  a  request  referred  to  in  paragraph  1,  that  Member  State  shall 
transmit the request by electronic means and without delay to the taxable person.  

3.  Member States  shall provide that, upon request,  a taxable person submits the 
requested  records  by  electronic  means  to  the  Member  State  in  which  that  taxable 
person is  identified for  VAT purposes. Member States shall accept  that  the records 
may be submitted using a standard form.  

The Member State in which that taxable person is identified for VAT purposes 
4. 
shall  transmit  the  records  obtained  by  electronic  means  and  without  delay  to  the 
requesting Member State in which those supplies are taxable.  

5.  Where the requesting Member State in  which those supplies are taxable does 
not receive the records within 30 days of the date of the making of the request, that 
Member  State  may  take  any  action  in  accordance  with  its  national  legislation  to 
obtain such records. 

The Commission shall by means of implementing acts specify the following: 

Article 47lb 

(a) 

(b) 

technical  details  for 

the 
Article 47la(3); 

the  standard  form  as  referred 

to 

in 

the  technical  details,  including  a  common  electronic  message,  for 
providing the information referred to in 47la(1), (2) and (4) as well as the 
technical means for the transmission of this information.'; 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 58(2).’. 

Amendments to Regulation (EU) No 904/2010 applicable from 1 January 2026 

Article 2 

Regulation (EU) 904/2021 is amended as follows: 

(1) 

Article 21 is amended as follows: 

(a) 

 paragraph 2 is amended as follows: 

(i) 

point (c) is replaced by the following: 

‘(c)   the VAT identification numbers of the persons who carried out the 

supplies of goods and services referred to in point (b);’; 

EN 

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(ii) 

in point (e), the introductory words are replaced by the following: 

‘the total value of the supplies of goods and services referred to in point 
(b)  from  each  person  referred  to  in  point  (c)  to  each  person  holding  a 
VAT  identification  number  issued  by  another  Member  State  under  the 
following conditions:’; 

Article 3 

Amendments to Regulation (EU) No 904/2010 applicable from 1 January 2028 

Regulation (EU) 904/2021 is amended as follows: 

(1) 

in Article 2(1), points (g) and (h) are replaced by the following: 

 ‘(g)  ‘intra-Community supply of goods’ means any supply of goods the data 
of which must be submitted in accordance with Article 262 of Directive 
2006/112/EC; 

(h) 

‘intra-Community  supply  of  services’  means  any  supply  of  services  the 
data  of  which  must  be  submitted  in  accordance  with  Article  262  of 
Directive 2006/112/EC;’; 

(2) 

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

‘(a)   information which it collects pursuant to Title XI, Chapter 6, of Directive 

2006/112/EC as amended by Council Directive (EU) 2022/890*; 

* Council Directive (EU) 2022/890 of 3 June 2022 amending Directive 2006/112/EC 
as  regards  the  extension  of  the  application  period  of  the  optional  reverse  charge 
mechanism in relation to supplies of certain goods and services susceptible to fraud 
and  of  the  Quick  Reaction  Mechanism  against  VAT  fraud  (OJ  L  155,  8.6.2022,  p. 
1).’; 

(3) 

in Chapter V, the following Section 3 is inserted after Article 24f: 

‘SECTION 3  
Central electronic system for the exchange of VAT information’; 

Article 24g 

1.   The  Commission  shall  develop,  maintain,  host  and  technically  manage  an 
electronic,  central  VAT  information  exchange  system  (“central  VIES”)  for  the 
purposes referred to in Article 1. 

Each  Member  State  shall  develop,  maintain,  host  and  technically  manage  a 
2. 
national electronic system to automatically transmit the following information to the 
central VIES: 

(a) 

(b) 

information  which  it  collects  pursuant  to  Title  XI,  Chapter  6,  Section  1,  of 
Directive 2006/112/EC; 

information  on  the  identity,  activity,  legal  form  and  address  of  persons  to 
whom it has issued a VAT identification number, collected pursuant to Article 

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213 of Directive 2006/112/EC, as well as the date on which that number was 
issued; 

the  VAT  identification  numbers  the  Member  State  has  issued  which  have 
become invalid, and the dates on which those numbers became invalid; 

the date and time on which the data referred to in points (a), (b) and (c) were 
modified; 

(c) 

(d) 

The  information  referred  to  in  point  (a)    shall  be  in  conformity  with  the  European 
standard  on  electronic  invoicing  and  the  list  of  its  syntaxes  as  set  out  in  Directive 
2014/55/EU of the European Parliament and of the Council.* 

The Commission shall specify by means of an implementing act the details and the 
format  of  the  information  listed  in  this  paragraph.  That  implementing  act  shall  be 
adopted in accordance with the examination procedure referred to in Article 58(2). 

3. 
Each Member State may store the information referred to in paragraph 2 of this 
Article  and  the  information  referred  to  in  Article  24j,  points  (b),  (c)  and  (d)  in  the 
national electronic system referred to in paragraph 2 of this Article. 

Article 24h 

1.  Member States shall ensure that the information available in the central VIES 
is kept up-to-date, complete and accurate. 

The  Commission  shall  by  means  of  an  implementing  act  establish  the  criteria 
determining  which  changes  are  not  pertinent,  essential  or  useful  enough  to  be 
transmitted  in  the  central  VIES.    That  implementing  act  shall  be  adopted  in 
accordance with the examination procedure referred to in Article 58(2). 

2.  Member  States  shall  adopt  the  measures  necessary  to  ensure  that  the  data 
provided by taxable persons and non-taxable legal persons for their identification for 
VAT purposes in accordance with Article 214 of Directive 2006/112/EC, are, in their 
assessment, complete and accurate before they are transmitted to the central VIES. 

Member States shall  implement procedures for checking these data as determined by 
the results of their risk assessment. The checks shall be carried out, in principle, prior 
to identification for VAT purposes or, where only preliminary checks are conducted 
before such identification, no later than 6 months after such identification. 

3.  Member States  shall inform  the  Commission  and other Member States  of the 
measures  implemented  at  national  level  to  ensure  the  quality  and  reliability  of  the 
information in accordance with paragraph 2. 

4.  Member States shall enter the information referred to in Article 24g(2) into the 
central VIES without delay. 

The  details  on  the  acceptable  technical  delays  shall  be  defined  in  an  implementing 
act.  That  implementing  act  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 58(2). 

By way of derogation from paragraph 4 of the Article, the information referred 
5. 
to in Article 24g(2), point (a), shall be entered into the central VIES no later than one 
day  after  the  collection  of  the  information  submitted  by  the  taxable  person  to  the 
competent authorities. 

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The information referred to in Article 24g(2) shall be available in central VIES 

6. 
for 5 years from the end of the year in which the information was transmitted to it. 

Article 24i 

1.  Member States shall automatically update the central VIES to ensure that the 
VAT identification number, as referred to in Article 214 of Directive 2006/112/EC, 
is shown as invalid in the central VIES in the following situations: 

(a)  where  persons  identified  for  VAT  purposes  have  stated  that  their  economic 
activity,  as  referred  to  in  Article  9  of  Directive  2006/112/EC,  has  ceased  or 
where the competent authority considers that they have ceased such activity; 

(b)  where  persons  have  declared  false  data  in  order  to  obtain  VAT  identification 
and,  had  the  tax  administration  known,  the  latter  would  have  refused 
identification for VAT purposes or withdrawn the VAT identification number; 

(c)  where persons have failed to  communicate changes to  their data and, had the 
tax administration known, the latter would have refused identification for VAT 
purposes or withdrawn the VAT identification number. 

The situations listed in this paragraph are provided without prejudice to any national 
rules providing for additional situations. 

2.  For  the  purposes  of  paragraph  1,  point  (a),  an  economic  activity  shall  be 
considered  by  the  competent  authority  to  be  ceased  in  at  least  the  following 
situations: 

(a) 

despite  being  required  to  do  so,  the  person  identified  for  VAT  purposes  has 
failed  to  submit  VAT  returns  for  1  year  after  the  expiry  of  the  time  limit  for 
submitting the first return that was missed; 

(b)  despite  being  required  to  do  so,  the  person  identified  for  VAT  purposes  has 
failed to submit the data on the intra-Community supply of goods or services 
for 6 months after expiry of the time limit for submitting those data. 

The situations listed in this paragraph are provided without prejudice to any national 
rules providing for additional situations. 

Article 24j 

The  central  VIES  shall  have  the  following  functions  with  regard  to  information 
received in accordance with Article 24g(2) of this Regulation: 

(a) 

(b) 

(c) 

to store the information referred to in points (b), (c) and (d) of this Article and 
Article 24g(2) of this Regulation ; 

to  cross-check  the  information  on  intra-Community  supplies  and  acquisitions 
collected pursuant to Title XI, Chapter 6, Section 1, of  Directive 2006/112/EC; 

to  aggregate  information  in  respect  of  persons  to  whom  a  VAT  identification 
number  was  issued  and  collected  pursuant  to  Article  213  of  Directive 
2006/112/EC  and  make  the  following  details  accessible  to  the  officials  or 
electronic systems referred to in Article 24k: 

(i) 

the  total  value  of  all  intra-Community  supplies  of  goods  and  the  total 
value  of  all  intra-Community  supplies  of  services  to  persons  holding  a 

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(ii) 

(iii) 

(iv) 

VAT  identification  number  issued  by  a  Member  State  by  all  operators 
identified for the purposes of VAT in each other Member State;  

the  VAT  identification  numbers  of  the  persons  who  carried  out  the 
supplies of goods and services referred to in point (i);  

the total value of the supplies of goods and services referred to in point 
(i)  from  each  person  referred  to  in  point  (ii)  to  each  person  holding  a 
VAT identification number issued by a Member State; 

the total value of the supplies of goods and services referred to in point 
(i)  from  each  person  referred  to  in  point  (ii)  to  each  person  holding  a 
VAT identification number issued by another Member State; 

to  process  information,  together  with  any  information  communicated  or 
collected pursuant to this Regulation; 

to make the information referred to in Article 24g(2) and in points (b), (c) and 
(d) of this Article accessible to the officials or electronic systems referred to in 
Article 24k. 

Article 24k 

Each Member State shall grant automated access to the central VIES to: 

officials who are authorised by the competent authority of that Member State to 
directly access information in the central VIES; 

(d) 

(e) 

1. 

(a) 

(b)  Eurofisc liaison  officials, as referred to  in  Article 36(1), who hold  a personal 
user identification for the central VIES and where that access is in connection 
with an investigation into suspected VAT fraud or is to detect VAT fraud; 

(c) 

officials  of  that  Member  State  that  check  the  requirements  provided  for  in 
Article 143(2) of Directive 2006/112/EC. 

2.   Each Member State shall grant automated access to the central VIES to: 

(a) 

national  electronic  systems  of  that  Member  State  that  check  the  requirements 
provided for in Article 143(2) of Directive 2006/112/EC; 

(b)  national  electronic  systems,  as  referred  to  in  Article  24g(2),  for  the  purposes 

referred to in Article 1(1), second paragraph, of this Regulation; 

(c) 

(d) 

3. 

(a) 

(b) 

the central electronic system of payment information referred to in Article 24a 
(‘CESOP’); 

the electronic systems carrying out swift exchange, processing and analysis of 
targeted information on cross-border fraud by Eurofisc. 

The Commission shall specify by means of an implementing act the following: 

the practical arrangements for the identification of the officials and electronic 
systems referred to in paragraphs 1 and 2; 

the  technical  details  concerning  the  access  of  the  officials  and  electronic 
systems  referred  to  in  paragraphs  1  and  2  to  the  information  referred  to  in 
Article 24j, points (a) to (d). 

That  implementing  act  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 58(2). 

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Article 24l 

The costs of establishing, operating and maintaining the central VIES shall be 
1. 
borne  by  the  general  budget  of  the  Union.  These  costs  shall  include  those  of  the 
secure  connection  between  the  central  VIES  and  the  national  electronic  systems 
referred  to  in  Article  24g(2),  and  those  of  the  services  necessary  to  carry  out  the 
capabilities which are listed in Article 24j.  

2. 
Each  Member  State  shall  bear  the  costs  of  and  shall  be  responsible  for  all 
necessary developments to its national electronic system referred to in Article 24g(2) 
to  permit  the exchange  of information  using the CCN network or any other similar 
secure network. 

Article 24m 

The Commission shall specify by means of implementing acts the following: 

(a) 

(b) 

the tasks to be carried out by the Commission for the technical management of 
the central VIES; 

the  roles  and  responsibilities  of  Member  States  as  controllers  and  the 
Commission  as  processor  under  Regulation  (EU)  2016/679  and  Regulation 
(EU) 2018/1725 of the European Parliament and of the Council.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 58(2). 

⃰  Directive  2014/55/EU  of  the  European  Parliament  and  of  the  Council  of  16  April 
2014 on electronic invoicing in public procurement (OJ L 133, 6.5.2014, p. 1). 

± Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 
October  2018  on  the  protection  of  natural  persons  with  regard  to  the  processing  of 
personal data by the Union institutions, bodies, offices and agencies and on the free 
movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 
1247/2002/EC (OJ L 295, 21.11.2018, p. 39).’; 

Amendments to Regulation (EU) 904/2010 applicable from 1 January 2030 

Article 4 

Regulation (EU) 904/2010 is amended as follows: 

(1) 

(2) 

in Article 17(1), points (a), (b) and (c) are deleted; 

Article 20 is amended as follows: 

(a) 

paragraph 2 is deleted; 

(b)  paragraph 3 is replaced by the following: 

‘3.   By  way  of  derogation  from  paragraph  1,  of  this  Article,  where 
information  is  to  be  corrected  in,  or  added  to,  the  electronic  system 
pursuant  to  Article  19,  the  information  must  be  entered  no  later  than  1 
month after the period in which it was collected.’; 

(3) 

Article 21 is amended as follows: 

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(a) 

paragraph 3 is replaced by the following: 

‘3.  The  Commission  shall  determine  by  means  of  implementing  acts  the 
practical  arrangements  as  regards  the  conditions  provided  for  in  
paragraph  2a,  point  (d),  of  this  Article  in  order  to  enable  the  Member 
State  providing  the  information  to  identify  the  Eurofisc  liaison  official 
accessing the information. Those implementing  acts  shall be adopted in 
accordance with the examination procedure referred to in Article 58(2).’;  

(c) 

paragraphs 1a and 2 are deleted; 

Articles 22 and 23 are deleted; 

in Article 31, paragraph 1 is replaced by the following: 

(4) 

(5) 

The  competent  authorities  of  each  Member  State  shall  ensure  that  persons 
'1. 
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. That information shall correspond to the data referred to in Article 24g(2).'; 

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

Article 5 

Article 1, shall apply from 1 January 2025. 

Article 2 shall apply from 1 January 2026. 

Article 3 shall apply from 1 January 2028. 

Article 4 shall apply from 1 January 2030. 

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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