Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards VAT rules for the digital age
Date: 2022-12-08
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: VAT, e-invoicing, electronic commerce, electronic government, exchange of information, goods and services, intra-EU trade, provision of services, supply, tax evasion, tax harmonisation

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   EUROPEAN COMMISSION  Brussels, 8.12.2022  COM(2022) 701 final 2022/0407 (CNS)  Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards VAT rules 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 

• 
Value added tax (VAT) is a major source of revenue in all EU Member States1. It is also a key 
source  of  financing  for  the  EU  budget  since  0.3%of  VAT  collected  at  national  level  is 
transferred to the EU as own resources, representing 12% of the total EU budget. Despite the 
key  importance  of  VAT  in  budgetary  policymaking,  the  VAT  system  is  hampered  by  sub-
optimal  VAT  collection  and  control  methods.  It  also  imposes  excessive  burdens  and 
compliance costs. 

The revenue loss, known as the ‘VAT gap2’, delineates the issues caused by sub-optimal VAT 
collection and control. Estimated at EUR 93 billion in total for 2020, a significant part of this 
loss  is  due  to  missing  trader  intra-Community  (MTIC)  fraud3.  The  VAT  gap  also  includes 
revenues lost to domestic VAT fraud and evasion, VAT avoidance, bankruptcies and financial 
insolvencies,  as  well  as  miscalculations  and  administrative  errors.  The  VAT  system  is  not 
only  prone  to  fraud,  but  has  also  become  increasingly  complex  and  burdensome  for 
businesses. In particular, the 30-year-old VAT rules for cross-border trade are not adapted to 
doing business in the digital age, thus calling for reflection on how technology can be used to 
reduce administrative burdens and related costs for businesses and at the same time fight tax 
fraud. 
Therefore, in its 2020 Action Plan for fair and simple taxation supporting the recovery4, the 
Commission  announced  the  legislative  package  ‘VAT  rules  for  the  digital  age’,  which  was 
also  included  in  the  2022  Commission  work  programme5.  This  proposal  is  part  of  this 
package, together with a proposal for a Council Regulation amending the Regulation (EU) No 
904/2010 as regards the VAT administrative cooperation arrangements needed for the digital 
age6,  and  the  proposal  for  a  Council  implementing  Regulation  amending  Council 
Implementing Regulation (EU) No 282/2011 as regards information requirements for certain 
VAT schemes7.  

Following the announcement of the Commission’s Tax Action Plan, the Council stated that it 
“supports the Commission’s suggestion to clarify, simplify and modernise the EU VAT rules”, 
“welcomes the initiative announced by the Commission to modernise reporting obligations for 
cross-border transactions (…) and the Commission’s intention to examine the need to adapt 

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Eurostat: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Tax_revenue_statistics 
The VAT Gap is the overall difference  between the expected VAT revenue based on VAT legislation 
and ancillary regulations and the amount actually collected:  
https://ec.europa.eu/taxation_customs/business/vat/vat-gap_en 
Europol: 
missing-trader-intra-community-fraud 
COM(2020) 312 final. 
COM(2021) 645 final (Annex II, Point 20). 
Please include reference when available. 
Please include reference when available. 

https://www.europol.europa.eu/crime-areas-and-statistics/crime-areas/economic-crime/mtic-

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the  VAT  framework  to  the  platform  economy”8.  The  European  Parliament  resolutions 
generally support initiatives to fight VAT fraud9. Further, the European Parliament mentioned 
its  explicit  support  for  the  initiative  saying  it  “looks  forward  to  the  legislative  proposal  for 
modernising VAT reporting obligations”10. More recently, the European Parliament adopted a 
resolution11  noting  the  potential  for  data  and  digital  tools  to  reduce  red  tape  and  simplify 
various  taxpayer  obligations,  in  particular  in  the  area  of  VAT  returns  and  recapitulative 
statements,  (…)  and  welcoming  the  Commission's  proposal  to  modernise,  simplify  and 
harmonise  VAT  requirements,  using  transaction-based  real-time  reporting  and  e-invoicing. 
The resolution also emphasises that variances in the Member States’ tax regulations constitute 
a cumbersome challenge and, while endorsing the Union One Stop Shop (OSS), the resolution 
asks for its scope to be broadened to cover a wider range of services. 

This package has three main objectives: 

(1) 

(2) 

(3) 

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Modernising  VAT  reporting  obligations12,  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  economy13,  by  updating  the  VAT  rules 
applicable to the platform economy in order to address the issue of equal treatment, 
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 

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 goods14, 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. 

(1)  VAT reporting and digital reporting requirements (DRRs) 

The  VAT  Directive  dates  from  the  1970s  and,  as  such,  the  default  reporting 
requirements  are  not  digital.  This  said,  the  global  trend  shows  a  move  from 

Council  conclusions  on  fair  and  effective  taxation  in  times  of  recovery,  on  tax  challenges  linked  to 
digitalisation  and  on  tax  good  governance  in  the  EU  and  beyond  (FISC  226  ECOFIN  1097,  doc. 
13350/20).  
European Parliament resolution of 24 November 2016 on towards a definitive VAT system and fighting 
VAT  fraud  (2016/2033(INI));  European  Parliament  resolution  of  4 October 2018  on  fighting  customs 
fraud and protecting EU own resources (2018/2747(RSP)). 
European  Parliament  resolution  of  16 February  2022  on  the  implementation  of  the  Sixth  VAT 
Directive: what is the missing part to reduce the EU VAT gap? (2020/2263(INI)). 
European  Parliament  resolution  of  10 March  2022  with  recommendations  to  the  Commission  on  fair 
and simple taxation supporting the recovery strategy (P9_TA(2022)0082). 
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. 
https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en 

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traditional VAT compliance towards real-time sharing of transaction-based data with 
tax  administrations,  often  based  on  e-invoicing.  The  VAT  Directive15  represents  a 
significant  barrier  towards  digitalisation,  as  Member  States  need  to  obtain  a 
derogation  for  them  to  be  able  to  adopt  DRRs  based  on  obligatory  e-invoicing 
requirements. 

Even  so,  by  means  notably  of  such  a  derogation,  several  Member  States  have 
introduced  various  types  of  DRRs,  providing  information  to  tax  authorities  on  a 
transaction-by-transaction basis. The measures have proven successful in increasing 
VAT collection, thanks to the improvements in tax control and the deterrent effect on 
non-compliance.  The  related  increase  in  VAT  revenue  from  2014  to  2019  is 
estimated to be between EUR 19 billion and EUR 28 billion in those Member States 
which have introduced DRRs in this period, corresponding to  an annual increase of 
VAT revenue of between 2.6% and 3.5%16. 

The  VAT  Directive  grants  Member  States  a  wide  discretion  to  introduce  the 
obligations  they  deem  necessary  to  ensure  the  correct  collection  of  the  tax  and  to 
prevent evasion. Therefore, DRRs vary substantially from one Member State to the 
other.  They  can  consist  of  (i)  the  transmission  of  monthly  reports  of  business 
transactions, (ii) the real-time submission of invoices, (iii) the real or quasi-real time 
transmission  of  invoice  data,  or  (iv)  the  submission  of  tax  and  accounting  data  or 
VAT records. Other Member States have implemented non-digital tools for reporting 
transactions,  such  as  listings  which  do  not  provide  data  at  transactional  level,  but 
only  provide  the  values  of  sales  or  purchases  per  customer  or  supplier  (listings  of 
suppliers and customers). All these requirements are in addition to the requirement to 
submit VAT returns.  

The scale of the problems caused by the rapid introduction of divergent digital VAT 
reporting  requirements  and  the  need  to  act  swiftly  was  confirmed  by  stakeholders 
during  the  consultation17.  The  resulting  fragmentation  in  the  regulatory  framework 
brings  additional  compliance  costs  for  businesses  that  operate  in  different  Member 
States,  and  therefore  have  to  comply  with  varying  local  requirements,  and  creates 
barriers  within  the  single  market.  With  an  increasing  number  of  Member  States 

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There  is  no  explicit  option  available  for  Member  States  to  introduce  mandatory  e-invoicing 
requirements  as  a  means  of  ensuring  the  correct  collection  of  VAT  and  preventing  VAT  fraud.  The 
VAT Directive makes the use of e-invoices subject to their acceptance by the recipient, in Article 232; 
this  provision  cannot  be  derogated  via  Article 273,  which  allows  Member  States  to  introduce  other 
obligations on taxpayers to ensure the correct collection of VAT and to prevent VAT fraud. Hence, if a 
Member State  wishes to introduce  mandatory e-invoicing requirements, it  must do so by requesting a 
derogation  from  the  Directive  under  Article 395,  which  is  subject  to  the  unanimous  agreement  of  the 
Council based on a proposal from the Commission. 
To  estimate  whether  DRRs  improved  VAT  compliance,  thus  reducing  the  VAT  gap  and  increasing 
VAT  revenues,  an  econometric  analysis  was  carried  out  in  the  ‘VAT  in  the  Digital  Age’  study.  The 
effects of DRRs are estimated on two dependent variables: the VAT gap and C-efficiency. Full details 
of  the  model  specifications  and  the  results  are  available  in  Annex 4  of  the  impact  assessment  report 
accompanying this proposal (Commission staff working document SWD (2022) 393). 
Summary of the public consultation can be found here: VAT in the digital age (europa.eu). 

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implementing  different  models  of  digital  reporting  obligations18,  the  costs  of 
fragmentation  for  multinational  companies  (companies  with  presence  in  more  than 
one  Member  State)19  are  significant.  EU-wide  they  are  estimated  at  about 
EUR 1.6 billion  annually,  of  which  EUR 1.2 billion  are  borne  by  small-scale 
multinational  companies  and  EUR 0.4 billion  by 
large-scale  multinational 
companies20.  

tackle  VAT  fraud 

In addition, the current reporting system of intra-Community transactions (referred to 
in the VAT Directive as ‘recapitulative statements’21) does not allow Member States 
transactions  The  current 
linked 
to  effectively 
recapitulative  statements  date  from  1993  and  have  not  substantially  changed  since 
then.  They  are  ill-prepared  for  the  digital  economy  and  can  hardly  be  compared  to 
the  much  more  modern  digital  reporting  systems  implemented  by  some  Member 
States for domestic transactions. 

these 

to 

Among  other  shortcomings,  recapitulative  statements  only  provide  aggregated  data 
for  each  taxable  person,  and  not  transaction-by-transaction  data.  Moreover  they  do 
not  allow  data  from  supplies  to  be  cross-matched  with  that  of  acquisitions,  as  the 
VAT  Directive  leaves  the  reporting  of  intra-Community  acquisitions  optional  for 
Member  States  and  fewer  than  half  of  the  Member  States  have  introduced  this 
obligation.  Further,  theses  data  may  not  be  available  to  tax  authorities  in  other 
Member States at the right time, both because of filing frequency because of the time 
it takes for local tax authorities to upload data onto the system. These shortcomings 
were rightly highlighted by almost two thirds of informed stakeholders responding to 
the  public  consultation  who  totally  or  partly  agreed  that  recapitulative  statements 
would  be  more  effective  in  fighting  intra-EU  fraud  if  data  were  collected  on  a 
transaction-by-transaction basis and closer to the moment of the transaction. 

Any reform of the reporting of cross-border transactions inevitably entails changes to 
administrative cooperation and exchange of data between the competent  authorities 
of the Member States and the VAT Information Exchange System (VIES)22.  

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Different  types  of  digital  reporting  requirements  are  currently  in  place  in  several  Member  States: 
clearance e-invoicing (Italy), real-time reporting (Hungary, Spain), SAF-T reporting (Lithuania, Poland, 
Portugal),  VAT  listing  (Bulgaria,  Croatia,  Czechia,  Estonia,  Latvia,  Slovak  Republic)  and  some 
Member States publicly announced upcoming reporting requirements (France, Greece, Romania). 
Based  on  Eurostat  estimates,  there  are  about  210 000  multinational  companies  (MNCs)  in  the  Union, 
85% of which have a local headquarters and the rest being controlled by foreign entities. 
These mainly result from significant setup costs, especially in countries with more complex DRRs. For 
compliance, a small-scale MNC can be expected to invest about EUR 10 000 for SAF-T requirements, 
EUR 25 000 for real-time requirements and more than EUR 50 000 in case of e-invoicing. For a large 
scale  MNC,  figures  reach  up  to  EUR 50 000  for  SAF-T  requirements,  EUR 200 000  for  real-time 
requirements and EUR 500 000 for e-invoicing. 
When a business sells goods or services to a business in another Member State, it is obliged to submit a 
recapitulative statement to its Member State detailing the business to whom it has made the supply, and 
the total amount of supplies to that business. The information is shared between Member States, and is 
used to help ensure compliance.  
In 1993, with the introduction of the Internal Market, the border controls were abolished and replaced 
by reporting obligations of intra-Community supplies in the form of periodical recapitulative statements 
for VAT purposes (a recapitulative statement is a simple form submitted on a monthly/quarterly basis 

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These issues will be solved, in relation to the fight against VAT resulting from intra-
Community trade, by introducing  a transaction-by-transaction reporting system that 
will  provide  information  to  Member  States  in  almost  real  time,  in  line  with  the 
implemented  for  domestic 
successful  systems  several  Member  States  have 
transactions. In relation to the lack of harmonisation of domestic reporting systems, 
the issues will be tackled by establishing a common template that those reporting will 
have  to  follow,  allowing  taxable  persons  to  always  report  data  from  electronic 
invoices issued according to the European standard set up in  Directive 2014/55/EU 
on electronic invoicing in public procurement23. 

(2)  VAT treatment of the platform economy 
The rise of the platform economy business model24 has triggered new problems for 
the VAT system. One of these problems is VAT inequality. 

Under  VAT  rules,  a  taxable  person  means  any  person  (natural  or  legal)  who, 
independently,  carries  out  any  economic  activity25.  Taxable  persons  are  required  to 
register for VAT and charge VAT on their sales. However, individuals acting in their 
private capacity are not considered as taxable persons. In addition, small enterprises 
are  exempt  from  VAT  due  to  a  simplification  measure  relieving  them  of  VAT 
administrative obligations.  

Until  recently,  private  individuals  and  exempted  small  enterprises  were  not 
considered  to  have  any  impact  on  market  competition  with  VAT  registered 
businesses. But the platform economy has introduced new business models that are 
changing this situation. 

Private  individuals  and  small  businesses  can  provide  their  VAT-free  services  via  a 
platform  and  with  the  economies  of  scale  and  network  effect26  be  in  direct 

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).  These  recapitulative  statements  are  stored  in  national 
VAT databases. These databases are then connected through an electronic interface called VIES (VAT 
Information Exchange System), with the Commission managing the communication links between the 
Member  States  while  national  VIES  applications  are  developed  by  the  Member  States.  Tax 
administrations access VIES information for control purposes, while  economic operators use a module 
of  VIES,  called  the  ‘VIES-on-the-web’(VoW)  to  check  the  validity  of  their  client’s  VAT  number 
registered in the European Union for cross-border transactions on goods or services.  
Directive  2014/55/EU  of  the  European  Parliament  and  of  the  Council  of  16  April  2014 on  electronic 
invoicing in public procurement. 
‘Platform  economy’  is  used  to  describe  a  multi-sided  model  of  transactions,  where  there  are  three  or 
more parties involved. In these transactions, an online platform facilitates the connection between two 
or more distinct but interdependent sets of users. In these interactions, one of the parties to the platform 
(providers  or  underlying  suppliers)  could  offer  services  to  the  other  party  (consumer)  in  return  for 
monetary consideration. A platform usually charges a fee for the facilitation of the transaction. 
According to Article 9 of the VAT Directive and its settled case-law the concept of “economic activity” 
has  a  very  broad  meaning.  The  concept  of  “independently”  however  means  that  employees  are  not 
treated as taxable persons. 
The  capacity  to  build  networks  through  which  any  additional  user  will  enhance  the  experience  of  all 
existing users; an increased numbers of people or participants improve the value of a good or service.  

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competition with traditional VAT registered suppliers. This means that, for example, 
a hotel could be competing with accommodation listings which do not charge VAT 
on  their  services.  In  Europe  the  cost  of  accommodation  via  a  platform  can  be,  on 
average, some 8% to  17% cheaper than a regional  hotel’s average daily  rate27. The 
information  provided  by  the  “VAT  in  the  Digital  Age”28  study  indicates  that 
(although  it  varies  depending  on  the  type  of  platform)  up  to  70%  of  the  total  of 
underlying  suppliers  using  a  platform  are  not  registered  for  VAT.  More  than  two 
thirds of respondents with an opinion on the issue had experienced such  distortions 
of competition.  

The  passenger  transport  and  accommodation  sectors  have  been  explicitly  identified 
by the study as sectors in which VAT inequality is at its most apparent (in that the 
accommodation  platform  model  competes  directly  with  the  hotel  sector,  and  the 
passenger  transportation  platform  model  competes  directly  with  private  taxi  firms). 
These are also the two largest sectors of the platform economy29, behind the sale of 
goods  via  platforms  (also  known  as  ‘e-commerce’),  which  has  its  own  rules 
regarding the supply of goods.  

Another problem area is the lack of clarity on VAT rules that apply to the services 
rendered by these platforms and,  in  particular,  to  identifying  the  VAT status  of  the 
underlying supplier. 

The  taxable  status  of  those  providing  services  through  the  platform  determines  the 
VAT treatment of the platform facilitation services when the provider is established 
in a different Member State to that of the platform. In such a situation, regardless of 
whether the provider is a non-taxable person or a taxable person, the platform could 
use the One Stop Shop or apply  the reverse charge.  However, this  determination is 
not  straightforward,  as the platforms often  lack information  they need to  assess the 
status of the underlying supplier. 

In addition, various rules in the VAT Directive applicable to the platform economy 
have  been  applied  differently  by  Member  States30.  For  example,  the  facilitation 
services  charged  by  the  platforms  are  regarded  in  some  Member  States  as 
electronically  supplied  services,  while  in  others  they  are  regarded  as  intermediary 
services. Clarification of these rules is needed, as the current divergent application of 
EU VAT rules across the Member States can lead to different places of supply being 
applied31, which can subsequently lead to double taxation or non-taxation.  

One additional problem area relates to the obligations imposed on the platforms. 

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https://ipropertymanagement.com/research/airbnb-statistics 
VAT in the Digital Age. Final Report (vol. I – III). Specific Contract No 07 implementing Framework 
Contract No TAXUD/2019/CC/150. 
Having an ecosystem value of EUR 38.2 billion and EUR 43.2 billion per annum 
Table 25  of  the  VAT  in  the  Digital  Age  Study  (Part II)  shows  that  44%  of  respondents  found  the 
different application of the VAT rules by Member States to be a problem. 
The place of supply of an electronically supplied service to a non-taxable person is the place where the 
customer is established, whereas the place of supply of intermediary services to a non-taxable person is 
where  the  underlying  transaction  is  supplied,  which,  in  the  case  of  services  relating  to  immoveable 
property for example, would be where the property is located. 

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Platforms are required to keep certain information32 relating to supplies facilitated by 
them  and  to  make  this  available  on  request  to  Member  States.  However,  platforms 
are faced with a number of different requirements from Member States regarding the 
timeframe and format for this information. Therefore a regularisation is necessary. In 
addition, in order to combat fraud platforms need to keep this information and make 
it  available  not  only  for  business  to  business  (B2B)  (as  it  is  now)  but  also  for 
business to consumer (B2C) supplies. 

These  issues  will  be  solved  by  introducing  a  deemed  supplier  model,  by  which 
platforms  will  account  for  the  VAT  on  the  underlying  supply  where  no  VAT  is 
charged  by  the  supplier,  thereby  ensuring  equal  treatment  between  the  digital  and 
off-line  sectors  of  short-term  accommodation  rental  and  passenger  transport.    In 
addition,  clarifications  will  be  given  on  the  treatment  of  the  facilitation  service  to 
allow for a uniform application of the place of supply rules, and steps will be taken to 
harmonise the transmission of information from the platform to the Member States.  

(3)  VAT registration requirements in the EU  

Businesses  carrying  out  transactions  taxed  in  other  Member  States  still  face 
considerable  VAT  compliance  burdens  and  costs,  which  constitute  a  barrier  within 
the single market. These are estimated as follows:  

 

 

The  minimum  one-off  cost  of  VAT  registration  in  another  Member  State  is 
EUR 1 200.  

The minimum ongoing cost, on a yearly basis, for VAT compliance in another 
Member  State  is  EUR 8 000  for  an  average  business  and  EUR 2 400  for  an 
SME.  

The VAT e-commerce package that entered into application on 1 July 2021 provided, 
for  the  first  time,  comprehensive  VAT  legislation  dealing  with  the  e-commerce 
economy  (whereby  consumers  order,  essentially  via  the  internet,  directly  from 
suppliers in other Member States and in non-EU countries). The schemes developed 
(or  extended)  through  the  e-commerce  package  have  alleviated  the  registration 
burden for businesses carrying out transactions in Member States in which they are 
not  established,  avoiding  the  need  for  the  VAT  registration  of  suppliers/deemed 
suppliers in each Member State of establishment of their customer.  

These  schemes  are  known  as  the  One-Stop-Shop  (OSS)  for  supplies  to  consumers 
within  the  EU  and  the  Import  One-Stop-Shop  (IOSS)  for  the  importation  of  small 
parcels  of  consumer  goods  (where  the  value  does  not  exceed  EUR 150).  Specific 
VAT  provisions  and  obligations  were  introduced  for  ‘platforms’  (introducing  the 
notion of a ‘deemed supplier’) which have a predominant position in the e-commerce 
economy.  

The implementation of the OSS and IOSS has proved to be a great success as shown 
by the evaluation33 of the e-commerce package. The benefits of the OSS and IOSS 

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Article 242a of the VAT Directive. 
See point 3 hereafter. 

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for  businesses  and  for  the  single  market  was  confirmed  by  Member  States  in  the 
Council Conclusions34 of the March 2022 ECOFIN.  

However,  some  supplies  of  goods  and  services  are  not  covered  by  either  of  these 
simplification  schemes  and  instead  remain  subject  to  burdensome  VAT  accounting 
requirements  in  other  Member  States.  These  include  certain  types  of  supplies  of 
goods that, even though they may have a cross-border aspect, do not fall within the 
definition of intra-EU distance sales of goods. As the IOSS is currently optional, its 
capacity  to  alleviate  the  need  for  multiple  VAT  registrations  is  limited  and  the 
complexity of the import process is not reduced as far as possible.  

An extension of the scope of the OSS and IOSS would ensure a further decrease in 
the need for multiple VAT registrations in the EU.  

The VAT in the Digital Age proposal is a REFIT initiative that addresses the VAT rules in the 
context  of  rising  use  of  digital  technology35,  among  both  tax  authorities  and  the  business 
community. The VAT system has not  yet fully taken advantage of the opportunities created 
by  these  technological  advances.  New  digital  tools  and  solutions  will  help  tax  authorities 
tackle the VAT Gap more efficiently while allowing for VAT compliance to be simplified and 
reducing associated costs. This initiative thus seeks to further adapt the EU VAT framework 
to the digital era. 

Consistency with existing policy provisions in the policy area 

• 
This  initiative  is  consistent  with  the  proposal36  tabled  in  2018  by  the  Commission  for  a 
definitive VAT system for the taxation of trade between Member States, which is still  being 
discussed in Council. This proposal aims to replace the transitional system in force today37 by 
treating intra-Community transactions in the same way as domestic ones. VAT would be due 
in the Member State of destination of the goods38 at the rate of that Member State but would 
be  charged  and  collected  by  the  supplier  in  its  own  Member  State.  The  VAT  in  the  Digital 
Age initiative has the potential to strengthen both the current and the definitive VAT system.  

The  VAT  e-commerce  package  was  designed  to  reshape,  update  and  modernise  the  VAT 
system to ensure its relevance and effective application to the new realities of the e-commerce 
market. At the same time, the reforms sought to make VAT compliance easier for legitimate 
businesses who carry out cross-border online commercial activity by taking a new approach to 
tax collection. The main aim was to create a fairer, simpler and more harmonised system of 
taxation.  This  proposal  builds  on  the  successful  reform  of  the  VAT  e-commerce  rules  by 
further  reducing  the  need  for  non-identified  trades  to  register  in  the  Member  State  of 

34 

35 

36 
37 

38 

Council conclusions on the implementation of the VAT e-commerce package, ST 7104/22 of 15 March 
2022. 
2022 Commission Work Programme, Annex II: REFIT initiatives, sub-section "An economy that works 
for people" (No 20). 
COM(2018) 329 final. 
Under the existing system VAT is not charged on cross-border transactions, contrary to domestic ones, 
allowing  taxable  persons  to  buy  goods  free  of  VAT  within  the  single  market,  breaking  the  chain  of 
fractioned payment and creating an incentive for fraud 
This system would be extended to services at a later stage. 

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consumption.  This  will  inter  alia  include  an  update  of  the  current  e-commerce  rules 
applicable  to  Small  and  Medium  Enterprises  (SMEs)  allowing  SMEs  to  benefit  from  the 
simplifications brought by both the new SME39 and existing OSS schemes. 

The  initiative  supports  the  EU’s  sustainable  growth  strategy40  that  refers  to  better  tax 
collection, reduction of tax fraud, avoidance and evasion and to the reduction of compliance 
costs for business, individuals, and tax administrations. Improving taxation systems to favour 
more  sustainable  and  fairer  economic  activity  is  also  part  of  the  EU’s  competitive 
sustainability agenda.  

• 

Consistency with other Union policies 

The  VAT  in  the  Digital  Age  initiative  is  linked  to  the  treaty-based  goal  of  establishing  a 
functional  internal  market41  and  reflects  the  European  Commission’s  priorities42  to  improve 
the business taxation environment in the single market, as well as to tackle differences in tax 
rules  that  can  be  an  obstacle  to  the  deeper  integration  of  the  single  market.  This  initiative 
seeks  to  adapt  the  EU  VAT  framework  to  the  digital  era.  Therefore,  its  objectives  are  also 
consistent with one of the six top priorities of the Commission,  ‘A Europe fit for the digital 
age’,  and  its  objective  to  empower  businesses  to  seize  the  potential  of  the  digital 
transformation.  

The  Commission  has  set  the  improvement  of  tax  collection  and  the  reduction  of  tax  fraud, 
avoidance  and  evasion  as  priorities43.  These  two  topics  are  the  cornerstone  of  the  initiative.  
The  initiative  also  supports  the  EU’s  sustainable  growth  strategy44  that  refers  to  better  tax 
collection, reduction of tax fraud, avoidance and evasion and to the reduction of compliance 
costs  for  business,  individuals,  as  well  as  tax  administrations.  Improvement  of  taxation 
systems to favour more sustainable and fairer economic activity is also included in the EU’s 
competitive sustainability agenda.  

The VAT in the Digital Age initiative runs alongside other Commission initiatives relating to 
the  Digital  Economy,  such  as  the  recent  proposal  for  a  Directive  to  improve  working 

39 

40 

41 
42 
43 

44 

Council  Directive  (EU)  2025/285  on  the  common  system  of  VAT  as  regards  the  special  scheme  for 
small enterprises  
Member States’ recovery and resilience plans envisage a  wide  set of reforms aimed at  improving the 
business  environment  and  favouring  adoption  of  digital  and  green  technologies.  These  reforms  are 
complemented  by  important  efforts  to  digitalise  tax  administrations  as  a  strategic  sector  of  the  public 
administration. (Annual Sustainable Growth Survey 2022 (COM(2021) 740 final)). 
Article 3 of Treaty on European Union (TEU). 
https://ec.europa.eu/info/sites/default/files/political-guidelines-next-commission_en_0.pdf. 
Annual Growth Survey 2021 (see page 13) 
: 
finance/2022_european_semester_annual_sustainable_growth_survey.pdf. 
Member States’ recovery and resilience plans envisage a  wide  set of reforms aimed at  improving the 
business  environment  and  favouring  adoption  of  digital  and  green  technologies.  These  reforms  are 
complemented  by  important  efforts  to  digitalise  tax  administrations  as  a  strategic  sector  of  the  public 
administration. (Annual Sustainable Growth Survey 2022 (COM(2021) 740 final)). 

https://ec.europa.eu/info/system/files/economy-

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conditions  of  people  working  through  digital  labour  platforms45,  and  the  ongoing  work 
relating  to  short-term  rentals.  Under  these  initiatives  the  general  direction  is  to  make 
platforms more accountable and play a greater role in the regulatory framework. This is in in 
line  with  the  changes  proposed  in  this  Directive  for  the  platform  economy  where,  under 
certain circumstances, platforms will be responsible for paying the VAT due instead of small 
platform suppliers. This will improve the collection of VAT, as many of  these suppliers are 
unaware  of  their  potential  VAT  obligations  and  would  in  any  case  encounter  difficulties  in 
complying with these obligations.  

The VAT in the Digital Age initiative also ensures consistency with existing legislation in the 
digital area such, as the EU Directive on electronic invoicing in public procurement (B2G)46. 
This  Directive  aims  to  facilitate  the  use  of  a  common  European  standard  on  electronic 
invoicing  across  Member  States  to  promote  interoperability  and  convergence  at  EU  level. 
This has the potential to reduce obstacles to cross-border trade that arise from the coexistence 
of different national legal requirements and technical standards in e-invoicing.  The VAT in 
the Digital Age initiative provides for this European standard on electronic invoicing to be the 
default method for digital VAT reporting requirements purposes. 

This initiative is also consistent with the Customs Action Plan47.  Management of e-commerce 
is  one  of  the  four  key  areas  of  action  in  the  Customs  Action  Plan.    As  a  result,  the 
improvement  of  the  import  one  stop  shop  (IOSS)  scheme  in  this  proposal  is  limited  to  the 
mandatory provision of this scheme for platforms. Any other improvement or extension, such 
as  the  removal  of  EUR  150  threshold  below  which  this  simplification  scheme  can  be  used, 
will be done in the framework of this customs reform48.  

In the final report of the Conference on the Future of Europe49 citizens call for ‘Harmonizing 
and  coordinating  tax  policies  within  the  Member  States  of  the  EU  in  order  to  prevent  tax 
evasion and avoidance’, ‘Promoting cooperation between EU Member States to ensure that all 
companies in the EU pay their fair share of taxes’. The VAT in the Digital Age initiative is 
consistent with these goals. 

45 

46 

47 

48 
49 

The proposed Directive is expected to bring legal certainty on the employment status of people working 
through digital labour platforms, improve their working conditions (including for self-employed people 
subject  to  algorithmic  management)  and  enhance  transparency  and  traceability  in  platform  work, 
including in cross-border situations  
Directive  2014/55/EU  of  the  European  Parliament  and  of  the  Council  of  16  April  2014 on  electronic 
invoicing in public procurement. 
Communication  from  the  Commission  to  the  European  parliament,  the  Council  and  the  European 
Economic  and  Social  Committee  -Taking  the  Customs  Union  to  the  Next  Level:  a  Plan  for  Action, 
Brussels, 28.9.2020  (customs-action-plan-2020_en.pdf (europa.eu)). 
Commission seeks views on upcoming EU customs reform (europa.eu). 
Conference  on  the  Future  of  Europe  –  Report  on  the  Final  Outcome,  May  2022,  Proposal  16  (1)-(3). 
The Conference on the Future of Europe was held between April 2021 and May 2022. It was a unique, 
citizen-led  exercise  of  deliberative  democracy  at  the  pan-European  level,  involving  thousands  of 
European  citizens  as  well  as  political  actors,  social  partners,  civil  society  representatives  and  key 
stakeholders. 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  Directive  amends  the  VAT  Directive  on  the  basis  of  Article 113  of  the  Treaty  on  the 
Functioning  of  the  European  Union.  That  Article  provides  that  the  Council,  acting 
unanimously  in  accordance  with  a  special  legislative  procedure  and  after  consulting  the 
European  Parliament  and  the  Economic  and  Social  Committee,  can  adopt  provisions  to 
harmonise Member States' rules in the area of indirect taxation. 

• 

Subsidiarity (for non-exclusive competence)  

This  initiative  is  consistent  with  the  principle  of  subsidiarity.  Given  the  need  to  modify  the 
VAT  Directive,  the  objectives  of  this  initiative  cannot  be  achieved  by  the  Member  States 
themselves.  Therefore,  the  Commission,  which  has  responsibility  for  ensuring  the  smooth 
functioning  of  the  single  market  and  for  promoting  the  general  interest  of  the  EU,  needs  to 
propose actions to improve the situation.  

In  addition,  as  the  main  problems  at  stake  -  sub-optimal  VAT  collection  and  control,  and 
excessive burdens  and compliance costs - are  common to  all Member States, uncoordinated 
fragmented national actions would have the potential to distort intra-EU trade. In the targeted 
consultation50,  businesses  stated  their  preference  in  this  regard  to  have  VAT  rules  applied 
uniformly  at  EU  level,  rather  than  having  to  comply  with  different  reporting  or  registration 
obligations  at  national  level.  As  with  platforms,  there  are  significant  distortions  of 
competition between the on-line and off-line markets in the short-term accommodation rental 
and passenger transport sectors, as well as a non-harmonised approach to the place of supply 
of the facilitation services.  Therefore, the Commission needs to ensure that the VAT rules are 
harmonised.  Regarding  VAT  collection  and  control,  the  size  of  the  VAT  gap  and  its 
persistence  over  time  indicates  that  national  instruments  are  not  sufficient  to  fight  cross-
border  fraud,  as  shown  by  the  estimated  levels  of  MTIC  fraud,  which  can  only  be  fought 
efficiently  and  effectively  by  coordinated  action  at  EU  level.  The  intra-EU  aspect  of  VAT 
fraud therefore requires EU intervention regarding reporting obligations.  

• 

Proportionality 

The proposal is consistent with the principle of proportionality and does not go beyond what 
is necessary to meet the objectives of the Treaties, in particular the smooth functioning of the 
single market.  

Proportionality is ensured by the fact that Member States will be able to decide whether or not 
to introduce domestic reporting requirements based notably on whether the level of domestic 
VAT fraud is an urgent issue for them. The requirement for interoperability or convergence of 
national  systems  with  the intra-EU digital  reporting is  necessary  to  adopt  an EU wide DRR 
framework. 

50 

VAT  in  the  Digital  Age.  Final  Report  (vol.  IV  Consultation  Activities).  Specific  Contract  No 07 
implementing Framework Contract No TAXUD/2019/CC/150. 

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In  the  platform  economy  area,  proportionality  is  ensured  by  focusing  the  measure  on  the 
accommodation  and  passenger  transport  sectors,  where  the  issue  of  VAT  inequality  is  most 
acute.  

Proportionality is furthermore ensured by the fact that the ‘single VAT registration’ pillar of 
the initiative does not interfere with national VAT registration processes. Instead, it focusses 
on  limiting  the  instances  in  which  a  trader  who  is  established  outside  the  Member  State  of 
consumption is required to register for VAT in that Member State. 

An  EU-wide  framework  for  handling  VAT  registration  is  proportionate  as  it  will  make  the 
functioning  of  the  single  market  more  sustainable.  Removing  the  need  for  multiple 
registrations within the EU can, by its very nature, only be achieved with a proposal to amend 
the VAT Directive. 

• 

Choice of the instrument 

The  proposal  requires  amending  Directive  2006/112/EC  on  the  common  system  of  value 
added tax (the 'VAT Directive'), Council Implementing Regulation (EU) No 282/2011 laying 
down  implementing  measures  for  Directive  2006/112/EC  on  the  common  system  of  value 
added  tax  and  Council  Regulation  (EU)  No 904/2010  on  administrative  cooperation  and 
combating fraud in the field of value added tax. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The e-commerce package came into application on 1 July 2021 and introduced a number of 
amendments  to  the VAT rules governing the taxation of business-to-consumer (B2C) cross-
border  e-commerce  activity  in  the  EU.  The  most  noteworthy  amendments  include  the 
extension of the scope of the Union and non-Union Mini One Stop Shop (MOSS) schemes; 
the  abolition  of  the  EUR 22  VAT  exemption  threshold  for  imported  goods;  and  the 
introduction  of  the  IOSS  (Import  One-Stop  Shop)  and  special  arrangements  to  support  the 
collection of VAT on distance sales of imported goods not exceeding EUR 150.  

The Commission conducted an ex-post evaluation of the first 6 months of application of the e-
commerce package. The initial results are very encouraging and are testament to the success 
of  the  new  measures.  In  total,  in  the  first  6  months,  almost  EUR 8 billion  of  VAT  was 
collected  via  the  three  schemes  (Union  and  non-Union  OSS  and  IOSS).  The  results  of  the 
evaluation show that approximately EUR 6.8 billion of VAT was collected in the Union One-
Stop  Shop  and  non-Union  One-Stop  Shop  schemes,  which  equates 
least 
EUR 13.6 billion  on  an  annual  basis.  Furthermore,  in  the  first  6  months,  approximately 
EUR 2 billion  of  VAT  was  collected  specifically  in  relation  to  imports  of  low  value 
consignments  with  an  intrinsic  value  not  exceeding  EUR 150,  which  equates  to  around 
EUR 4 billion on an annual basis. Of the EUR 2 billion of VAT that was collected in relation 
to imports of low value goods in the first 6 months, almost EUR 1.1 billion was collected via 
the  Import  One-Stop  Shop.  The  package  has  met  the  goal  of  achieving  a  fairer  and  simpler 
system of taxation, while protecting Member States’ VAT revenue has been met.  

to  at 

The  implementation  of  the  package  has  also  helped  to  counter  VAT  fraud.  Analysis  from 
customs  data  indicates  that  the  top  8  IOSS  registered  traders  accounted  for  approximately 
91%  of  all  transactions  declared  for  import  into  the  EU  via  the  IOSS.  This  is  a  very 
encouraging statistic as it shows the impact the new ‘deeming’ provision for marketplaces has 

EN 

12 

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had  on  compliance.  The  proposal  therefore  envisages  the  introduction  of  a  deemed  supplier 
regime in the accommodation and passenger transport sectors in the platform economy. 

 • 

Stakeholder consultations 

On  6  December  2019,  the  European  Commission’s  Directorate-General  for  Taxation  and 
Customs  (DG  TAXUD)  organised  an  event  on  ‘VAT  in  the  Digital  Age’  in  Brussels, 
Belgium. This event brought stakeholders working in the field of VAT together to reflect on 
the opportunities and challenges that new technologies bring in the area of VAT. In particular, 
the  potential  of  using  advanced  technologies  was  discussed.  The  seminar  also  provided  a 
chance  to  share  recent  experiences  on  how  Member  States  use  digital  solutions  for  VAT 
reporting, collecting and fraud-detection. 

The Commission worked with two expert groups for discussions at technical level: the Group 
on  the  Future  of  VAT  (GFV)  and  the  VAT  Expert  Group  (VEG).  Meetings  of  the  GFV 
(9 February  and  6 May  2022)  and  of  the  VEG  (29 November  2021  and  10 June  2022)  took 
place to discuss different issues related to the VAT in the Digital Age initiative. A sub-group 
‘VAT aspects of the platform economy’ composed of members of the GFV and the VEG, was 
tasked  with  advising  and  assisting  DG  TAXUD  by  carrying  out  an  in-depth  analysis  of  the 
problems  related  to  VAT  encountered  by  the  different  actors  in  the  platform  economy.  The 
outcome  of  its  work  can  be  found  at:  2.  GROUP  ON  THE  FUTURE  OF  VAT  (GFV)  - 
Library (europa.eu). 

Two  Fiscalis  workshops  also  took  place  (May  and  October  2021)  to  gather  feedback  from 
Member States and stakeholders on the interim report and the draft final report of the ‘VAT in 
the Digital Age’ study. 

A  public  consultation  was  also  organised,  from  20 January  to  5 May  2022,  resulting  in  193 
responses. The consultation sought stakeholders' views on whether the current VAT rules are 
suited to  the digital  age, and on how digital  technology can be used  to  help  Member States 
fight  VAT  fraud  and  to  benefit  businesses.  The  consultation  report  is  available  on  the 
initiative’s  public  consultation  page:  https://ec.europa.eu/info/law/better-regulation/have-
your-say/initiatives/13186-VAT-in-the-digital-age/public-consultation_en.  

Stakeholders  agreed  there  was  a  disconnect  between  the  old  VAT  rules  and  today’s  digital 
age.  

On VAT reporting,  the respondents  agreed that a DRR  could  bring benefits and made clear 
their preference for an e-invoicing solution that can also be used for their internal processes. 
Member States called for more autonomy in deciding on domestic DRR.  

On platform economy, stakeholders broadly recognised problems, with more nuanced views 
depending on the respondent’s business model. Those that would be impacted (i.e. platforms) 
generally  rejected  the  ‘deemed  supplier’  provision  and  expressed  their  preference  for  the 
status quo.  

On VAT registration, stakeholders unanimously agreed that the scope of the OSS/IOSS needs 
to be extended. Businesses also asked for the reverse charge to be made mandatory for B2B 
supplies by non-established persons. There was also support for making the IOSS mandatory. 

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• 

Collection and use of expertise 

The  Commission  used  the  analysis  carried  out  by  Economisti  Associati  S.r.l.,  for  the  study 
‘VAT in the Digital Age’ (running from October 2020 to March 2022)51. The final report was 
submitted on 1 April 2022. 

The study’s aim was first to evaluate the current situation with regard to the digital reporting 
requirements,  to  the  VAT  treatment  of  the  platform  economy;  and  to  the  single  VAT 
registration and the Import One-Stop Shop and secondly, to assess the impacts of a number of 
possible policy initiatives in these areas.  

• 

Impact assessment 

Examined by the Regulatory Scrutiny Board on 22 June 2022, the impact assessment for the 
proposal  obtained  a  positive  opinion  (Ares(2022)4634471).  The  Board  recommended  more 
detail be added, to describe better the methodologies used for modelling and to further clarify 
the options.  The  impact  assessment was  accordingly amended to  include  Member State  and 
sectoral perspectives on the platform economy, the econometric analysis/techniques used for 
modelling  were  comprehensively  described  and  the  structure  of  the  DRRs  linked  to  the 
options was detailed.  

Several policy options were analysed in the impact assessment.  

 

 

 

For VAT reporting, the options ranged from a simple recommendation to introduce 
an EU DRR and request for data in a specific format, to the introduction of DRR at 
both EU and domestic level.  

On  the  VAT  treatment  of  the  platform  economy  area,  the  options  ranged  from 
legal  clarifications  to  the  introduction  of  a  wide  ‘deemed  supplier’  provision 
applicable to all sales of services via platforms.   

For VAT registration the options related to intra-EU trade (different ranges of OSS 
extension  and  the  introduction  of  a  reverse  charge  for  B2B  supplies  by  non-
established persons) and importations of low value consignments (making the IOSS 
mandatory for different suppliers, with/without a certain limit and the removal of the 
EUR 150 threshold for use of the IOSS). 

The analysis revealed that best balance regarding the policy options in terms of effectiveness, 
proportionality and subsidiarity would be achieved by combining the introduction of DRRs at 
EU  level,  a  ‘deemed  supplier’  provision  for  the  short-term  accommodation  rental  and 
passenger transport sectors and a combination of broader OSS extension, reverse charge and a 
mandatory IOSS for platforms. 

Between 2023 and 2032 this approach is expected to bring between EUR 172 billion and EUR 
214 billion net benefits, including EUR 51 billion in savings. These savings include:  

51 

VAT in the Digital Age. Final report (vol. I – III). Specific Contract No 07 implementing Framework 
Contract No TAXUD/2019/CC/150. 

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 

 

 

EUR 41.4 billion  from  VAT  reporting  (EUR 11 billion  from  the  removal  of  old 
costs, 
reporting  obligations,  EU 24.2 billion 
EUR 4.3 billion  savings  pre-filled  VAT  returns,  and  EUR 1.9 billion  e-invoicing 
benefits);  

reduction  of 

fragmentation 

EUR 0.5 billion from streamlining and clarifications in platform economy area; and  

EUR 8.7 billion from removing VAT registration obligations. Environmental, social 
and business automation benefits, as well as benefits related to the functioning of the 
Internal  Market  (more  level-playing  field)  and  tax  control  efficiency  are  also 
expected.  

In line with the sustainable development goals No 8 and 952, a more efficient and sustainable 
VAT system promotes economic growth, while digital reporting supports business automation 
and fosters innovation. In line with the ‘digital by default’ principle, the introduction of digital 
reporting saves paper invoices and benefits the environment.  

The impact  assessment  and its annexes, the executive summary  and the  Board’s opinion on 
the  impact  assessment  are  available  at  the  consultation’s  page  on  “Have  your  say”  portal: 
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13186-VAT-in-the-
digital-age_en.   

• 

Regulatory fitness and simplification 

This proposal is a REFIT initiative  to modernise the current VAT rules  and take account of 
the  opportunities  offered  by  digital  technologies53.  The  proposal  is  expected  to  harmonise 
VAT treatment and promote the provision of cross-border supplies in the single market, and 
help  improve  tax  collection  and  therefore  ensure  sustainable  revenues  during  the  recovery 
from the COVID-19 pandemic. 

The expectation is that companies engaged in cross-border transactions will see a net benefit 
from  the  introduction  of  the  proposal.  Overall,  the  introduction  of  digital  reporting 
requirements (DRR) at EU level, the deemed supplier regime and the single VAT registration 
(SVR), will support the ‘one in, one out’ principle or even go further, to ‘one in, multiple out’ 
taking account of the multiple obligations created by national authorities. The overall saving 
over the 10-year period between 2023 and 2032 is estimated at EUR 51 billion and the total 
implementation cost (for businesses and national administrations) is EUR 13.5 billion in the 
same period.   

The  removal  of  recapitulative  statements  as  a  result  of  the  DRR  is  expected  to  bring  a  net 
benefit to companies engaged in cross-border transactions. However, companies that are not 
active across borders, (the vast majority of micro and small entities) would incur costs related 
to  the  introduction  of  a  DRR.  Those  costs  could  be  partly  mitigated  by  the  introduction  of 
additional services at national level, such as the pre-filling of VAT returns. As for the SVR, it 
is expected to further reduce the need for multiple registrations in other  Member States and 

52 
53 

https://sdgs.un.org/goals. 
2022 Commission Work Programme, Annex II: REFIT initiatives, sub-section "An economy that works 
for people" (No 20). 

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help reduce administrative burdens and related costs for businesses involved in cross-border 
supplies in the single market. 

The  Fit  for  Future  Platform  included  the  VAT  in  the  Digital  Age  in  its  annual  work 
programme  for  2022,  recognising  its  potential  for  reducing  the  administrative  burden  in  the 
policy field54. The evidence behind the opinion of this expert group of 5 December 2022 has 
been taken into account during the preparation of this proposal. 

Fundamental rights 

• 

N/A 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  is  expected  to  increase  VAT  revenues  for  Member  States.  The  operational 
objectives  are  set  at  a  VAT  gap  decrease  of  up  to  4  percentage  points  compared  with  2019 
level,  baseline  included.  The  estimated  overall  benefit  between  2023  and  2032  including 
additional VAT revenue ranges between EUR 172 billion and EUR 214 billion. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The VAT Committee, an advisory committee on VAT issues in which representatives of all 
Member States participate and which is chaired by Commission officials from the Directorate 
General Taxation and Customs Union (DG TAXUD), will monitor the implementation of the 
VAT  in  the  Digital  Age  initiative,  and  discuss  and  clarify  possible  interpretation  issues 
between Member States regarding the new legislation. 

The Standing Committee on Administrative Cooperation (SCAC) will deal with all possible 
issues regarding administrative co-operation between Member States resulting from  the new 
provisions  covered  in  this  legislative  package.  In  case  new  legislative  developments  are 
required, the GFV and the VEG may be further consulted. 

In  addition,  the Commission  and  the Member States will monitor and evaluate whether this 
initiative  is  functioning  properly  and  the  extent  to  which  its  objectives  have  been  achieved 
based  on  the  indicators  set  out  in  Section 4  of  the  impact  assessment  accompanying  this 
proposal. 

• 

Explanatory documents (for directives) 

The proposal does require explanatory documents on the transposition. 

• 

Detailed explanation of the specific provisions of the proposal 

Platforms: Articles 28a, 46a, 135 (3), 136b, 172a, 242a, 306 

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2022_annual_work_programme_-_fit_for_future_platform_en.pdf (europa.eu) 

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A  deemed  supplier  regime  will  be  introduced  in  the  short-term  accommodation  rental,  and 
passenger transport sectors of the platform economy (Article 28a). Under this measure, where 
the underlying supplier does not charge VAT because they are, for example, a natural person 
or  they  make  use  of  the  special  scheme  for  small  enterprises,  the  platform  will  charge  and 
account for the VAT on the underlying supply.  This will ensure a level playing field between 
platforms offering services and other traditional suppliers qualifying as taxable persons, while 
not  imposing  a  burden  on  the  underlying  suppliers  operating  through  the  platform.  The 
‘deemed  supplier’  model  is  a  simplification  measure  intended  to  facilitate  the  collection  of 
VAT in specific situations. This is typically the case when the intermediary in a transaction 
(i.e. the platform) is better placed than the underlying supplier to ensure the collection of the 
VAT due on this transaction. The reasons are either because it would be too burdensome for 
this  underlying  supplier  to  collect  the  VAT  (e.g.  when  the  underlying  supplier  is  a  natural 
person or a taxable person using special schemes for small enterprises), or because it is more 
secure to collect it from this intermediary (when the underlying supplier is not established in 
the  EU).    Further  elements  relating  to  the  practical  application  of  the  measure  are  in  the 
accompanying proposal to amend Implementing Regulation (EU) No 282/2011. 

In order to prevent abuse, it has been clarified that a transaction for which a platform is the 
deemed supplier cannot be included in the special scheme for travel agents (Article 306). 

Further,  clarifications  to  the  existing  VAT  legislation  in  this  area  have  been  introduced. 
Namely: 

 

 

 

 

 

That  the  facilitation  service  provided  by  a  platform  should  be  regarded  as  an 
intermediary service (Article 46a). This allows for a uniform application of the place 
of supply rules for the facilitation service. 

That  the  supply  by  the  underlying  supplier  to  the  platform  shall  be  VAT  exempt 
without a deduction right (Article 136b). 

That the provision of short-term accommodation rental shall be regarded as a sector 
similar  in  nature  to  the  hotel  sector,  and  therefore  not  eligible  to  be  exempt  from 
VAT  (Article 135).  This  ensures  that  the  deemed  supply  from  the  platform  to  the 
final  consumer  has  the  same  VAT  treatment  as  the  provision  of  services  from 
traditional hotels to the final consumer.  

That  the  supply  by  the  platform  to  the  final  customer  should  not  impact  on  the 
deduction right of the platform for its activities (Article 172a). 

That,  for  supplies  falling  outside  the  deemed  supplier  model,  the  platform  will  be 
obliged to keep the records relating to both business to business (B2B) and business 
to consumer (B2C) supplies (Article 242a). Accompanying legislation (the proposal 
to amend Regulation (EU) No 904/2010) will standardise how this information is to 
be transmitted to the Member States. For supplies falling within the deemed supplier 
model, the normal VAT accounting rules will apply. 

E-invoicing  will  be  the  general  rule  for  the  issuance  of  invoices:  Articles 217,  218  and 
232 

The  adaptation  of  the  VAT  Directive  to  the  new  digital  reality  requires  a  change  in  the 
treatment  given  to  electronic  invoices.  Until  now,  the  VAT  Directive  has  put  on  an  equal 

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footing  paper  and  electronic  invoices.  Article 232  required  that  the  issuance  of  electronic 
invoices  be  subject  to  the  acceptance  of  the  recipient.  This  requirement  impeded  Member 
States from implementing mandatory electronic invoicing that could be used as a basis for an 
electronic  reporting  system.  It  also  slowed  down  the  development  of  electronic  invoices,  as 
taxable persons could not adapt their invoicing systems to implement full electronic invoicing 
because  they  had  to  issue  paper  invoices  whenever  the  recipient  did  not  accept  electronic 
invoices. 

The proposal changes this situation, providing in Article 218 that electronic invoicing will be 
the default system for the issuance of invoices. The use of paper invoices will only be possible 
in  situations  where  Member  States  authorise  them.  This  authorisation  cannot  cover  those 
cases  that  are  subject  to  the  reporting  obligations  in  Chapter 6  of  Title XI,  as  that  would 
prevent  or  create  difficulties  for  the  automatic  reporting  of  the  data.  Taxable  persons  will 
always  be  allowed  to  issue  electronic  invoices  according  to  the  European  standard.  This 
standard  is  the  one  adopted  by  the  Commission  Implementing  Decision  (EU)  2017/187055 
according to the request laid down in Directive 2014/55/EU. The issuance and transmission of 
electronic  invoices  cannot  be  conditional  on  a  prior  authorisation  of  validation  by  the  tax 
authorities  of  the  Member  State  in  order  to  be  sent  to  the  recipient.  Several  Member  States 
have  been  granted  a  special  measure  to  apply  mandatory  e-invoicing,  where  such  clearance 
systems have been implemented. These systems can only be applied by those Member States 
up to 1 January 2028, ensuring the convergence with the EU digital reporting system.   

To ensure that taxable persons will not depend on the authorisation of the recipient to issue an 
electronic invoice, Article 232 is deleted from the VAT Directive. 

Further,  the  definition  of  electronic  invoice  in  the  VAT  Directive  is  changed  to  align  the 
concept with the one in Directive 2014/55/EU on electronic invoicing in public procurement, 
which  regulates  electronic  invoicing  in  B2G  transactions.  As  a  result,  when  referring  to 
electronic  invoices  in  the  VAT  Directive,  reference  will  be  made  to  structured  electronic 
invoices. 

Deadline for the issuance of invoices on intra-Community supplies of goods and supplies 
of services where the reverse charge applies: Article 222 

In the case of exempted intra-Community supplies of goods and for services supplied by non-
established  taxable  persons  subject  to  the  reverse  charge,  the  VAT  Directive  provides  for  a 
deadline to issue an electronic invoice that could take up to forty-five days from the moment 
the chargeable event occurred.  

The new reporting system is built under the philosophy of real-time information. Given that 
the reporting is based on the issuance of the invoice, such  a deadline will delay excessively 
the  arrival  of  the  information  on  those  supplies  to  the  tax  administration.  For  that  reason, 

55 

Commission  Implementing  Decision  (EU)  2017/1870  of  16 October  2017  on  the  publication  of  the 
reference  of  the  European  standard  on  electronic  invoicing  and  the  list  of  its  syntaxes  pursuant  to 
Directive 2014/55/EU of the European Parliament and of the Council 

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Article 222  sets  up  a  deadline  of  two  days  after  the  chargeable  event  takes  place  for  the 
issuance of invoices in these cases. 

Elimination of the possibility to issue summary invoices: Article 223  

The aim of the new reporting system is to provide information on transactions in almost real-
time  to  the  tax  administrations  and  foster  the  use  of  electronic  invoices.  The  possibility  to 
issue summary invoices for a calendar month goes against those goals. For that reason, Article 
223 is deleted, so there will be no possibility to continue issuing summary invoices.  

Content of the invoices: Article 226 

The  aim  of  the  new  reporting  system  is  to  provide  the  necessary  information  to  tax 
administrations  while  minimising  the  administrative  burden  for  taxable  persons.  In  order  to 
achieve  the  latter  objective,  the  reporting  system  will  take  advantage  of  the  issuance  of  an 
electronic invoice to automate the process of reporting. However, for this to be possible, it is 
necessary to include in the invoice all the information required by the tax administrations for 
the reporting obligation. 

This is the reason why Article 226 has been changed to ensure the inclusion in the invoice of 
all the data that needs to be reported. The data elements added to the content of the invoice are 
the identifier of the bank account  in which the payment for the invoice will be credited, the 
agreed dates and amount of each payment related to a concrete transaction, and, in the case of 
an invoice that amends the initial invoice, the identification of that initial invoice. 

Elimination of outdated Articles: Article 237 

Article 237 provides for an obligation on the Commission to present a report to the European 
Parliament and the Council on the impact of the invoicing rules. Given that this obligation has 
already been fulfilled56, there is no reason to keep this Article in the VAT Directive. 

Digital reporting system for intra-Community transactions: Articles 262 to 271 

One of the objectives of the initiative is to replace the outdated recapitulative statements with 
a digital reporting requirements system for intra-Community transactions, which will provide 
faster  information  on  a  transaction-by-transaction  basis  and  with  higher  quality.  That 
information will feed into the risk analysis systems of the Member States to help them counter 
the  VAT  fraud  linked  with  the  intra-Community  trade,  in  particular  Missing  Trader  Intra-
Community fraud. For that purpose, Chapter 6 of Title XI, which referred to the recapitulative 
statements,  refers  now  to  digital  reporting  requirements,  and  its  new  section  1,  to  digital 
reporting requirements for intra-Community transactions. 

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Report from the Commission to the European Parliament and the Council assessing the invoicing rules 
of Directive 2006/112/EC on the common system of value added tax (COM(2020)47). 

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The  digital  reporting  requirements  for  intra-Community  transactions  will  cover  the  same 
transactions that were covered by the recapitulative statements with the exception of the call-
off  stocks  under  the  conditions  set  out  in  Article 17a,  which  will  cease  to  exist.  For  this 
reason,  the  second  paragraph  of  Article 262  is  deleted.  In  addition,  supplies  of  goods  and 
services subject to the reverse charge mechanism in accordance with Article 194 will also be 
included  in  the  recapitulative  statements  and  consequently  in  the  digital  reporting 
requirements. 

Article 263 provides for the main features of the new digital reporting system: the information 
has to be transmitted on a transaction-by-transaction basis, the deadline for the transmission 
of the data is two working days after the issuance of the invoice, or after the date the invoice 
should have been issued in case the taxable person has not complied with their obligation to 
issue an invoice, the transmission of the data has to be carried out electronically, and Member 
States will provide the means for that transmission. Finally, the information can be submitted 
directly by the taxable person or by a third party on their behalf. 

The transmission of the data can be done according to the European Standard. Member States 
can provide for the transmission of the data from electronic invoices issued under a different 
format,  as  long  as  they  also  allow  the  use  of  the  European  Standard.  In  any  case,  the  data 
formats  allowed  by  Member  States  will  have  to  guarantee  the  interoperability  with  the 
European standard.  

This provision provides flexibility to Member States and taxable persons to use different data 
formats for the transmission of the data. However, it provides for at least one standard which 
will be accepted by all Member States and therefore allows companies to submit their data on 
intra-Community  transactions  according  to  the  European  Standard  in  any  Member  State, 
without needing to adapt to different reporting systems. 

The  first  paragraph  of  Article 264  provides  for  the  information  that  has  to  be  submitted  for 
each  transaction.  Basically,  this  information  is  the  same  that  had  to  be  submitted  in  the 
recapitulative statements, but detailed for each transaction instead of aggregated by customer. 
However, there are new fields that have been added to improve the detection of fraud. These 
new  fields  are  the  reference  to  the  previous  invoice  in  case  of  rectification  of  invoices,  the 
identification of the bank account into which the payment for the invoice will be credited and 
the  dates  agreed  for  the  payment  of  the  amount  of  the  transaction.  With  a  view  to  a  full 
standardization and interoperability, implementing rules shall be adopted by the Commission 
to define a common electronic message to this purpose. 

Article 266  allowed  Member  States  to  request  additional  data  on  intra-Community 
transactions. This possibility runs counter to the desired harmonisation in this field. For that 
reason,  this  Article  is  deleted  from  the  VAT  Directive,  so  taxpayers  will  always  submit  the 
same  information  when  they  carry  out  an  intra-Community  transaction,  irrespective  of  the 
Member State in which the transaction takes place. 

Article 268 places an obligation on Member States to collect data from the taxpayers that, in 
their  territory,  make  intra-Community  acquisitions  of  goods  or  transactions  treated  as  such. 
The  collection  of  this  data  was  optional  for  Member  States  under  the  recapitulative 
statements. 

The replacement of the recapitulative statements with a new digital reporting system requires 
the modification of  certain  Articles of the VAT Directive which contained references to  the 

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recapitulative statements, to replace them with the reference to the new reporting system. This 
is the case with Articles 42, 138a, 262, 265 and 267. Other Articles that regulated aspects of 
the recapitulative statements and are no longer necessary with the new reporting system have 
been deleted. This is the case with Articles 266, 269, 270 and 271. 

Digital reporting system for supplies of goods and services for consideration carried out 
within the territory of one Member State: Articles 271a to 273 

Apart  from  replacing  the  recapitulative  statements  with  a  new  digital  reporting  system  for 
intra-Community transactions, the initiative aims to achieve the harmonization of the existing 
and future reporting systems for supplies of goods and services for consideration carried out 
within  the  territory  of  the  Member  State,  in  order  to  avoid  the  administrative  burden  which 
this fragmented framework entails for taxable persons operating cross-border. These systems 
will  align  with  the  digital  reporting  system  designed  for  intra-Community  transactions, 
simplifying compliance to taxpayers, which will be able to provide with a common format the 
data required for both domestic and intra-Community transactions, in any Member State. 

This  harmonisation  is  achieved  by  the  rules  included  in  the  new  Section  2  of  Chapter 6  of 
Title XI. 

The first paragraph of Article 271a allows Member States to put in place a reporting system 
for supplies of goods and services carried out between taxable persons within their territory. 
The second paragraph of Article 271a allows Member States to put in place reporting systems 
for any other type of transaction. This second paragraph covers for instance, the reporting of 
supplies of goods or services carried out by a taxable person to a private individual. 

To be noted that Article 271a constitutes an option, but not an obligation for Member States. 
However, if they decide to put in place a reporting system according to the first paragraph of 
that Article, that is to say a reporting system for transactions between taxable persons within 
the territory of their Member State, such a system will have to comply with the features laid 
down in Article 271b.  

The features of the reporting system in Article 271b are similar to the one designed for intra-
Community transactions: reporting on a transaction-by-transaction basis, transmission of the 
data two working days after the issuance of the invoice,  or after the date the invoice should 
have been issued where the taxable person has not complied with their obligation to issue an 
invoice,  the  possibility  of  transmitting  the  data  directly  by  the  taxable  person  or  through  a 
service provider, and the possibility to transmit the data according to the European Standard. 
Member States can put at the disposal of taxable persons additional tools to transmit the data. 
The  objective  is,  once  again,  to  provide  enough  flexibility  to  Member  States  and  taxable 
persons to use different methods for the transmission of the data, while providing for at least 
one standard which will be accepted by all Member States and therefore allowing companies 
to  submit  their  data  according  to  the  European  Standard  in  any  Member  State,  without 
needing to adapt to different reporting systems. 

It  will  be  necessary  to  verify  if  the  reform  of  reporting  system  achieves  its  objectives  of 
reducing  the  VAT  gap  and  reducing  the  costs  for  taxable  persons  derived  from  the 
fragmentation of those systems. For that reason, Article 271c asks the Commission to submit 
by  March  2033  a  report  evaluating  the  results  achieved  by  this  reform  and,  if  necessary,  a 
proposal  to  overcome  the  limitations  and  proposing  a  further  harmonisation  of  domestic 
reporting.  This  deadline  will  allow  to  evaluate  the  reporting  systems  once  they  are  fully 

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implemented, account taken that the full adaptation to the harmonised requirements does not 
need to take place until 2028. 

To achieve the harmonisation of reporting systems it is not enough that the future systems are 
implemented  according  to  the  features  laid  down  in  this  initiative.  Member  States  which 
already have reporting systems in place for these transactions will have to adapt them to the 
features of the harmonised reporting system. For that purpose, the initiative requires that this 
adaptation takes place by 2028 at the latest. 

Article 273 continues to  give Member States  freedom  to  implement  these  obligations which 
they  deem  necessary  to  ensure  the  correct  collection  of  VAT  and  to  prevent  evasion. 
However,  this  freedom  is  limited  in  relation  to  reporting  obligations,  which  can  only  be 
implemented  according  to  the  provisions  of  Chapter 6  of  Title XI,  in  relation  to  the 
transactions under their scope. 

Single VAT Registration (SVR) and improvements to the existing e-commerce rules and 
the margin scheme 

Modifications  and clarifications to  the existing VAT legislation have been introduced as  set 
out below. 

Moving  towards  the  taxation  at  destination  principle  and  in  line  with  Article 4  of  Council 
Directive  (EU)  2022/542  amending  Directives  2006/112/EC  and  (EU)  2020/285  as  regards 
VAT  rates57,  Article 14(4),  point (1)(a),  is  modified  to  extend  the  definition  of  intra-
Community  distance  sales  of  goods  to  cover  second-hand  goods,  works  of  art,  collectors’ 
items and antiques. Furthermore, Article 35 is deleted and as such, these supplies are taxed at 
the place of destination in line with Article 33 point (a). As a consequence, it allows for  the 
application of the OSS simplification scheme to declare these distance sales, thereby further 
minimising the need to register in the several Member States. 

In  order  to  reduce  opportunities  for  VAT  avoidance,  the  new  Article 39a  provides  that  the 
supplies  of  works  of  art  and  antiques  without  dispatch  or  transport  (or  supplies  where  the 
dispatch or transport of the goods begins and ends in the same Member State) are taxed at the 
place where the customer is established, has their permanent address or usually resides. 

The application of the deemed supplier rule is extended by the modifications to Article 14a. In 
particular,  in  respect  of  supplies  of  goods  made  within  the  EU,  paragraph 2  is  modified  to 
extend  the  application  of  the  deemed  supplier  rule.  Under  its  expanded  scope,  the  deemed 
supplier rule will now include all supplies of goods within the EU facilitated by an electronic 
interface,  irrespective  of  where  the  underlying  supplier  is  established  and  the  status  of  the 
purchaser.  In  addition,  a  new  paragraph 3  is  inserted  to  provide  for  the  application  of  the 

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Council  Directive  (EU)  2022/542  of  5  April  2022  amending  Directives  2006/112/EC  and  (EU) 
2020/285 as regards rates of value added tax. 

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deemed  supplier  rule  to  certain  transfers  of  own  goods  that  are  facilitated  via  an  electronic 
interface. 

The provisions in the VAT Directive pertaining to call-off stock arrangements are amended to 
introduce a cut-off date, 31 December 2024, beyond which, no new transfers of stock under 
those arrangements can be effected. Article 17a, which governs call-off stock arrangements is 
further amended by the insertion of a new paragraph to clarify that the Article will cease to 
apply  with  effect  from  31 December  2025.  These  amendments  are  introduced  to  reflect  the 
fact  that  the  current  call-off  stock  arrangements  will  no  longer  be  required  as  the  new  OSS 
simplification  scheme  for  transfers  of  own  goods  is  comprehensive  and  encompasses  cross-
border movements of goods that are currently covered by call-off stock arrangements. 

Article 59c  stipulates  that  there  is  a  EUR 10.000  calendar-based  threshold,  below  which 
cross-border supplies of telecommunications, broadcasting and electronic (TBE) services and 
intra-Community  distance  sales  of  goods,  supplied  by  an  EU  established  supplier  who  is 
established  in  only  one  Member  State,  may  remain  subject  to  VAT  in  the  Member  State 
where that taxable person supplying those TBE services is established, or where those goods 
are located at the time their dispatch or transport begins. In addition to cross-border supplies 
of TBE services, it is now clarified that only intra-Community distance sales of goods that are 
supplied from the Member State where the taxable person is established are included in that 
threshold. 

The modification in Article 66 helps to clarify the timing of the chargeable event in respect of 
supplies under the non-Union OSS and Union OSS simplification schemes. 

The  new  paragraph 1a  of  Article 143  foresees  that  an  implementing  act  shall  be  adopted  to 
introduce  special  measures  to  prevent  certain  forms  of  tax  evasion  or  avoidance  by  better 
securing the correct  use and  verification process  of the  IOSS  VAT identification number of 
the supplier or of the intermediary acting on their behalf that is required for the application of 
the exemption provided for in point (ca) of Article 143(1). 

In order to  further minimise the need to  register in  a Member State  where the taxation of a 
domestic  B2B  supply  occurs,  the  modification  in  Article 194  renders  mandatory  for  the 
Member States to  accept  the application of  the reverse charge mechanism where a supplier, 
who is not established for VAT purposes in the Member State in which VAT is due, makes 
supplies of goods  to  a person who is  identified for VAT in  that Member State. This  reform 
will ensure that, in such circumstances, the supplier who is not identified there, does not have 
to  register  in  that  Member  State.  Further,  the  modification  excludes  supplies  of  margin 
scheme  goods  from  the  mandatory  application  of  the  reverse  charge  mechanism.  To  ensure 
adequate  follow-up  of  the  goods,  this  type  of  supplies  is  now  to  be  mentioned  in  the 
recapitulative statement as referred to in Article 262. 

As  the  new  OSS  simplification  scheme  for  transfers  of  own  goods  covers  cross-border 
movements  of  goods  that  are  currently  covered  by  call-off  stock  arrangements,  the 
modifications  in  Articles 243(3)  and  262(2)  remove  the  provisions  in  the  VAT  Directive 
pertaining  to  call-off  stock  arrangements  with  effect  from  1 January  2026  as  they  are  no 
longer  required.  As  already  mentioned,  a  window  of  12 months  is  foreseen  so  that  call-off 
stocks arrangements effected on or before 31 December 2024 can be finalised. 

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The  modification  in  Article 359  extends  the  scope  of  the  non-union  OSS  to  supplies  of 
services  from  non-EU  business  to  all  non-taxable  persons,  even  if  they  do  not  have  their 
permanent address, nor do they usually reside, in a Member State. 

The modification in Article 365 clarifies the time by which amendments can be made to the 
relevant VAT returns in  the non-Union OSS scheme. Amendments can now be made in the 
same  return  insofar  as  these  amendments  take  place  before  the  time  that  the  return  was 
required to be submitted.  

For the purpose of the Union OSS scheme, the  new paragraphs in Article 369a broaden the 
definition of Member State of consumption to include supplies of goods according to Articles 
36  (supply  of  goods  with  installation  or  assembly),  37  (supply  of  goods  on  board  ships, 
aircrafts  or  trains)  and  39  (supply  of  gas,  electricity,  heating  and  cooling),  and  domestic 
supplies of goods. 

In  Article  369b,  it  is  stipulated  that,  for  the  above-mentioned  types  of  supplies,  the  Union 
OSS scheme can also be used insofar as these goods are supplied to non-taxable persons (or to 
taxable  persons  or  non-taxable  legal  persons  whose  intra-Community  acquisitions  of  goods 
are  not  subject  to  VAT  pursuant  to  Article 3(1)  of  Directive  2006/112/CE).  In  addition,  the 
scheme  can  also  be  applied  for  domestic  supplies  of  margin  scheme  goods  to  any  other 
taxable person supplied under the margin scheme by taxable dealers. 

The modification in Article 369g(1) and the new paragraphs amend the content of the Union 
OSS return to enable the inclusion of the above-mentioned supplies. 

The modification in Article 369g(2) and the new paragraph (2a) clarify the information to be 
provided  in  the  Union  OSS  return  in  relation  to  the  above-mentioned  supplies  and  indicate 
that zero rated and otherwise exempted supplies of goods are covered by the Union OSS and, 
therefore, shall also be reported. 

The  modification  in  Article 369g(3)  indicates  that  the  Union  OSS  return  shall  include  zero 
rated and otherwise exempted supplies of services covered by the special scheme. 

The  modification  in  Article 369g(4)  clarifies  that  amendments  to  VAT  returns  in  the  Union 
OSS  scheme  after  the  time  that  the  return  had  to  be  submitted,  need  to  be  done  in  a 
subsequent return. 

The modification in Article 369j stipulates that deduction is not possible in the VAT return of 
the  Union  OSS  scheme  but  that  VAT  is  to  be  refunded  in  accordance  with  the  appropriate 
refund system. 

The  new  paragraph  in  Article 369m  makes  the  use  of  the  IOSS  mandatory  for  electronic 
interfaces facilitating as deemed supplier certain distance sales of imported goods. 

Article 369p  is  amended  to  provide  that,  before  commencing  to  use  the  special  scheme  for 
Imports (IOSS), a taxable person or an intermediary appointed on their behalf must indicate to 
the Member State of identification the taxable person’s status as a deemed supplier in respect 
of distance sales of goods imported into the EU.  

The modification in Article 369r and the new paragraphs provide that, if a taxable person fails 
to comply with the rules of the IOSS, they will be excluded from the scheme unless the said 

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taxable  person  is  obliged  to  use  this  scheme  as  deemed  supplier.  If  such  a  deemed  supplier 
persistently fails to comply with the rules relating to this special scheme, they will incur other 
sanctions rather than exclusion from the scheme. 

The modification in paragraph 2 of Article 369t clarifies the time by which amendments can 
be  made  to  the  relevant  VAT  returns  for  the  IOSS  scheme.  If  amendments  are  to  be  made 
after the time that the return had to be submitted, these have to be done in a subsequent return. 

The modification to Article 369w stipulates that, under the special scheme, VAT is not to be 
deducted but to be refunded in accordance with the appropriate refund system. 

The  new  Articles 369xa  to  369xk  provide  for  the  application  of  a  new  scheme  specifically 
designed to simplify the VAT compliance obligations associated with certain transfers of own 
goods. 

Article 369xa provides definitions that apply to the new scheme for transfers of own goods. 
Capital  goods, or  goods  that do not  allow  for  a full right  of deduction in  the Member State 
where the intra-Community acquisition takes place, are excluded from the special scheme. 

Article 369xb defines the scope of the scheme. Any taxable person making transfers of own 
goods, as defined in Article 369xa, can register to use this special scheme, in which case all of 
their relevant transfers will be covered by the special scheme. 

Article 369xc  requires  taxable  persons  making  use  of  the  scheme  to  inform  their  Member 
State of identification, by electronic means, in case of commencement, cessation or relevant 
changes to their taxable activities covered by this special scheme. 

Article 369xd provides that a taxable person using this special scheme shall, for the purpose 
of transfers covered by that scheme, be registered in one Member State of identification only.  
For  the  purpose  of  identification  in  the  special  scheme  for  transfers  of  own  goods,  the 
Member  State  of  identification  shall  use  the  individual  VAT  identification  number  already 
allocated to the taxable person in respect of their obligations under the internal system. 

Article 369xe provides for the circumstances under which taxable persons making use of the 
scheme  for  transfers  of  own  goods  shall  be  excluded  from  that  scheme,  including,  among 
other situations, where they persistently fail to comply with the rules of the scheme or cease 
their relevant activities.  

Article 369xf stipulates that VAT returns shall be submitted every month by electronic means, 
even when no relevant activity has been carried out. 

Article 369xg  describes  the  information  that  the  monthly  VAT  return  shall  contain  and 
stipulates that amendments to these returns, after the time that the return had to be submitted, 
have to be done in a subsequent return.   

Article 369xh  sets  out  the  requirements  in  relation  to  the  currency  to  be  used  in  the  VAT 
return. 

Article 369xi  stipulates  that,  for  transfers  of  own  goods  under  the  scheme,  the  intra-
Community acquisitions are exempt in the Member State to which the goods are dispatched or 
transported. 

EN 

25 

  EN 

Article 369xj stipulates that deduction is not possible in the above-mentioned VAT return but 
that VAT is to be refunded in accordance with the appropriate refund system or deducted as 
inputs  in  the  national  VAT  return  of  a  Member  State  in  circumstances  where  the  taxable 
person is already identified for VAT purposes in a Member State in respect of activities not 
covered by the special scheme. 

Article 369xk  sets  out  the  record  keeping  obligations  for  taxable  persons making  use  of  the 
special scheme for transfers of own goods. 

EN 

26 

  EN 

2022/0407 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

amending Directive 2006/112/EC as regards VAT rules 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) 

(3) 

1 
2 
3 

4 

5 

6 

The  rise  of  the  digital  economy  has  significantly  impacted  on  the  operation  of  the 
Union VAT system, as it is unsuited to the new digital business models, and does not 
allow  for  the  full  use  of  the  data  generated  by  digitalisation.  Council  Directive 
2006/112/EC3 should be amended to take account of this evolution.  

The  VAT  reporting  obligations  should  be  adapted  to  address  the  challenges  of  the 
platform economy and to reduce the need for multiple VAT registrations in the Union. 

VAT  revenue  loss,  known  as  the  ‘VAT  Gap’,  was 
in  2020  estimated  at 
EUR 93 billion4  in  the  Union,  a  significant  part  of  which  consists  of  fraud,  in 
particular missing trader intra-Community  fraud5, estimated in  the range  of  EUR 40-
60 billion6. In the final report of the Conference on the Future of Europe citizens call 
for ‘Harmonizing and coordinating tax policies within the Member States of the EU in 

OJ C , , p. . 
OJ C , , p. . 
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). 
The VAT Gap is the overall difference  between the expected VAT revenue based on VAT legislation 
and 
collected:  
regulations 
https://ec.europa.eu/taxation_customs/business/vat/vat-gap_en 
Europol: 
missing-trader-intra-community-fraud  
European 
https://www.eca.europa.eu/Lists/ECADocuments/SR15_24/SR_VAT_FRAUD_EN.pdf 

https://www.europol.europa.eu/crime-areas-and-statistics/crime-areas/economic-crime/mtic-

Auditors:  

ancillary 

actually 

amount 

Court 

and 

the 

of 

EN 

27 

  EN 

                                                 
 
 
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

order  to  prevent  tax  evasion  and  avoidance’,  ‘Promoting  cooperation  between  EU 
Member  States  to  ensure  that  all  companies  in  the  EU  pay  their  fair  share  of  taxes’. 
The VAT in the Digital Age initiative is consistent with these goals. 

In order to increase tax collection on cross-border transactions and to end the existing 
fragmentation stemming from Member States’ implementation of divergent reporting 
systems,  rules  should  be  laid  down  for  Union  digital  reporting  requirements.  Such 
rules should provide information to tax administrations on a transaction-by-transaction 
basis, in order to allow cross matching of data, increase the control capabilities of tax 
administrations  and  create  a  deterrent  effect  on  non-compliance,  while  reducing 
compliance costs for businesses operating in different Member States and eliminating 
barriers within the internal market. 

To facilitate the automation of the reporting process for both taxable persons and tax 
administrations,  the  transactions  to  be  reported  to  tax  administrations  should  be 
documented electronically. The use of electronic invoicing should become the default 
system  for  issuing  invoices.  Nevertheless,  Member  States  should  be  allowed  to 
authorise  other  means  for  domestic  supplies.  The  issuance  of  electronic  invoices  by 
the supplier and its transmission to the customer should not be conditional on a prior 
authorisation or verification by the tax administration.  

The definition of  an electronic invoice should be aligned with  that used in  Directive 
2014/55/EU of the European Parliament and the Council7, to achieve standardisation 
in the area of VAT reporting. 

For  the  VAT  reporting  system  to  be  implemented  in  an  efficient  manner,  it  is 
necessary that the information reaches the tax administration without delay. Therefore, 
the deadline for the issuance of an invoice for cross-border transactions should be set 
at 2 working days after the chargeable event has taken place. 

The  electronic  invoice  should  facilitate  the  automated  transmission  to  the  tax 
administration of the data needed for control purposes. For this purpose, the electronic 
invoice  should  contain  all  the  data  that  have  to  be  later  transmitted  to  the  tax 
administration. 

The implementation  of the electronic invoice  as  the default method for documenting 
transactions  for  VAT  purposes  would  not  be  possible  if  the  use  of  the  electronic 
invoice  remains  subject  to  the  acceptance  by  the  recipient.  Therefore,  such  an 
acceptance should no longer be required for the issuance of electronic invoices. 

(10)  The Commission has complied with its obligation to present a report to the European 
Parliament  and  the  Council  on  the  impact  of  the  invoicing  rules  applicable  from 
1 January  2013  and  notably  on  the  extent  to  which  they  have  effectively  led  to  a 
decrease  in  administrative  burdens  for  businesses,  as  required  by  Article  237  of 
Directive  2006/112/EC.  As  this  obligation  has  already  been  fulfilled,  it  should  be 
removed from that Directive. 

7 

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). 

EN 

28 

  EN 

                                                 
 
(11)  The  obligation  to  submit  recapitulative  statements  for  the  reporting  of  intra-
Community transactions should be removed, as the digital reporting requirements for 
intra-Community transactions cover, under their scope, the same transactions, but with 
faster  and  more  detailed  information.  The  digital  reporting  requirements  cover  the 
same transactions that the recapitulative statements with the exception of transactions 
under  call-off  stocks  arrangements,  as  referred  to  in  Article 17a  of  Directive 
2006/112/EC, which should be reported through the one-stop-shop (OSS) return. 

(12) 

In order to facilitate for taxable persons the transmission of the invoice data, Member 
States should put at the disposal of the taxable persons the necessary means for such 
transmission, which should allow that the data is sent by the taxable person directly or 
by a third party on that taxable person’s behalf. 

(13)  Whilst the information to be transmitted through the digital reporting requirements for 
intra-Community  transactions  should  be  similar  to  what  was  transmitted  through  the 
recapitulative  statements,  it  is  necessary  to  request  taxable  persons  to  provide 
additional  data, 
tax 
administrations can follow not only the goods but also the financial flows. 

including  bank  details  and  payment  amounts,  so 

that 

(14)  Placing an unnecessary administrative burden on taxable persons operating in different 
Member States should be avoided.  Therefore, such taxable persons should be able to 
provide  the  required  information  to  their  tax  administrations  using  the  European 
standard  laid  down  in  Commission  Implementing  Decision  (EU)  2017/18708,  which 
fulfils  the  request  laid  down  in  Article  3(1)  of  Directive  2014/55/EU  to  create  an 
European standard for the semantic data model of the core elements of an electronic 
invoice. Member States should be allowed to provide for additional methods to report 
the data that could be easier for certain taxable persons to comply with. 

(15) 

In  order  to  achieve  the  necessary  harmonisation  in  the  reporting  of  data  on  intra-
Community  transactions,  the  information  to  be  reported  should  be  the  same  in  all 
Member States, without the possibility for Member States to request additional data. 

(16)  An  important  element  in  the  fight  against  VAT  fraud  related  to  intra-Community 
transactions is to compare the data declared by the supplier with the data declared by 
the customer. For that purpose, the person acquiring the goods and the recipient of the 
services should be required to report the data on their intra-Community transactions. 

(17)  Several  Member  States  have  put  in  place  divergent  reporting  requirements  for 
transactions  within  their  territories,  leading  to  significant  administrative  burdens  for 
taxable persons which operate in different Member States, as they need to adapt their 
accounting  systems  to  comply  with  those  requirements.  In  order  to  avoid  the  costs 
derived  from  such  divergence,  the  systems  implemented  in  Member  States  to  report 
supplies of goods and services for consideration between taxable persons within their 
territory  should  comply  with  the  same  features  of  the  system  implemented  for  intra-
Community transactions. Member States  should provide for the  electronic means for 
the  transmission  of  the  information  and,  as  is  the  case  for  intra-Community 

8 

Commission  Implementing  Decision  (EU)  2017/1870  of  16 October  2017  on  the  publication  of  the 
reference  of  the  European  standard  on  electronic  invoicing  and  the  list  of  its  syntaxes  pursuant  to 
Directive 2014/55/EU of the European Parliament and of the Council (OJ L 266, 17.10.2017, p. 19). 

EN 

29 

  EN 

                                                 
 
transactions,  it  should  be  possible  for  the  taxable  person  to  submit  the  data  in 
accordance  with  the  European  standard  laid  down  in  Implementing  Decision  (EU) 
2017/1870, even though the relevant Member State could provide for additional means 
to  transmit  the  data.  The  data  should  be  allowed  to  be  sent  by  the  taxable  person 
directly or by a third party on that person’s behalf. 

(18)  Member States should not be obliged to implement a digital reporting requirement for 
supplies of goods and services for consideration between taxable persons within their 
territory.  However,  if  they  are  to  implement  such  a  requirement  in  the  future,  they 
should  align  it  with  the  digital  reporting  requirements  for  intra-Community 
transactions.  Member  States  which  already  have  a  reporting  system  for  these 
transactions in place should adapt such systems to ensure that the data are reported in 
accordance with the digital reporting requirements for intra-Community transactions. 

(19) 

In  order  to  evaluate  the  effectiveness  of  the  digital  reporting  requirements,  the 
Commission  should  prepare  an  assessment  report  evaluating  the  impact  of  digital 
reporting  requirements  on  the  reduction  of  the  VAT  gap  and  in  the  implementation 
and  compliance  costs  for  taxable  persons  and  tax  administrations,  in  order  to  verify 
whether the system has achieved its objectives or needs further adjustments.  

(20)  Member States should be able to continue to implement other measures to ensure the 
correct collection of VAT and to prevent evasion. However, they should not be able to 
impose  additional  reporting  obligations  on  the  transactions  that  are  covered  by  the 
digital reporting requirements. 

(21)  The  platform  economy  has  raised  certain  difficulties  for  the  application  of  the  VAT 
rules -in particular the establishment of the taxable status of the provider of the service 
and  the  level  playing  field  between  small  and  medium-sized  enterprises  (SMEs)  and 
other businesses.  

(22)  The  platform  economy  has  led  to  an  unjustified  distortion  of  competition  between 
supplies  performed  through  online  platforms  that  escape  VAT  taxation,  and  supplies 
performed in the traditional economy that are subject to VAT. The distortion has been 
most  acute  in  the  two  largest  sectors  of  the  platform  economy  behind  e-commerce, 
namely the short-term accommodation rental sector and the passenger transport sector.   

(23) 

It is therefore necessary to lay down rules to address the distortions of competition in 
the short-term accommodation rental and passenger transport sectors by changing the 
role  that  platforms  play  in  the  collection  of  VAT  (becoming  the  ‘deemed  supplier’). 
Under this model, platforms should be required to charge VAT where VAT is due but 
the  underlying  supplier  does  not  charge  it  because  they  are,  for  example,  a  natural 
person or a taxable person using the special scheme for small enterprises. 

(24)  Member States interpret the place of supply of the facilitation service provided by the 
platforms  to  non-taxable  persons  differently.  Therefore  it  is  necessary  to  clarify  this 
rule. 

(25)  Some  Member  States  rely  upon  Article  135(2)  of  Directive  2006/112/EC  to  apply  a 
VAT exemption to short-term accommodation rental, while others do not. In order to 
ensure equal treatment and consistency, whilst continuing to address the distortion of 
competition  in  the  accommodation  sector,  it  should  be  clarified  that  this  exemption 
does  not  apply  to  short-term  accommodation  rentals.  The  criteria  used  to  identify 
short-term  accommodation  rentals,  which  shall  be  regarded  as  having  a  similar 
function to  the hotel sector, are  only to  be applied for the purposes of this  Directive 
and  are  without  prejudice  to  the  definitions  used  in  other  Union  legislation.  This 

EN 

30 

  EN 

Directive  therefore  does  not  create  an  EU  definition  of  short-term  accommodation 
rentals.  

(26) 

In order to avoid that platforms making deemed supplies are inadvertently included in 
the special scheme for travel agents, or vice versa, transactions for which the platform 
is the deemed supplier should be excluded from that special scheme. 

(27)  This proposal is without prejudice to the rules laid down by other Union legal acts, in 
particular, Regulation (EU) 2022/2065 of the European Parliament and of the Council 
of  19 October  2022  on  a  Single  Market  For  Digital  Services  and  amending 
Directive 2000/31/EC (Digital Services Act)9 regulating other aspects of the provision 
of services by online platforms, such as obligations applicable to providers of online 
platforms allowing consumers to conclude distance contracts with traders. 

(28)  Council  Directives 

(EU)  2017/245510  and  2019/199511  amended  Directive 
2006/112/EC  as  regards  the  VAT  rules  governing  the  taxation  of  business-to-
consumer cross-border e-commerce activity in the Union. Those amending Directives 
improved  administrative  cooperation  and 
reduced  distortions  of  competition, 
introduced  a  number  of  simplifications.  Whilst  the  amendments  introduced  by  those 
Directives  that  apply  since  1  July  2021  have  been  largely  successful,  the  need  for 
certain improvements have nevertheless been identified.  

(29)  To  this  end,  some  existing  rules  should  be  clarified.  This    includes  the  rule  on  the 
calculation  of  the  EUR  10 000  calendar-based  threshold  laid  down  in  Article  59c  of 
Directive  2006/112/EC,  below  which  supplies  of  telecommunications,  broadcasting 
and electronic (TBE) services and intra-Community distance sales of goods, supplied 
by  a  Union  established  supplier  established  in  only  one  Member  State,  may  remain 
subject to VAT in the Member State where that taxable person supplying those TBE 
services is established, or where those goods are located at the time their dispatch or 
transport begins.  Article 59c of Directive 2006/112/EC should be amended to  ensure 
that only intra-Community distance sales of goods that are supplied from the Member 
State  where  the  taxable  person  is  established  are  included  in  the  calculation  of  the 
EUR 10 000 threshold, but not distance sales made from a stock of goods in another 
Member State. 

(30)  Directive  2006/112/EC  should  also  be  amended  to  clarify  that  all  business-to-
consumer  supplies  of  services,  supplied  within  the  Union  by  taxable  persons 
established outside the Union, fall within the scope of the special scheme for services 
supplied  by  taxable  persons  not  established  within  the  Community  (the  non-Union 
scheme), and not only supplies of services to Union established customers. Following 

9 

10 

11 

Regulation  (EU)  2022/2065  of  the  European  Parliament  and  of  the  Council  of  19 October  2022  on  a 
Single  Market  For  Digital  Services  and  amending  Directive 2000/31/EC  (Digital  Services  Act)  (OJ  L 
277, 27.10.2022, p. 1–102) 
Council  Directive  (EU)  2017/2455  of  5  December  2017  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 (OJ L 348, 29.12.2017, p. 7). 
Council Directive (EU) 2019/1995 of 21 November 2019 amending Directive 2006/112/EC as regards 
provisions relating to distance sales of goods and certain domestic supplies of goods 

EN 

31 

  EN 

                                                 
 
the introduction of the new rules on VAT rates by Council Directive (EU) 2022/54212 
and  the  foreseen  entry  into  force  of  the  new  SME  rules13  and  in  order  to  cover 
exemptions  under  Article 151  of  Directive  2006/112/EC  regarding  supplies  of  goods 
and  services  inter  alia  under  diplomatic,  consular  arrangements  and  to  certain  other 
international bodies, it is also necessary to broaden the Union OSS scheme under  Title 
XII,  Chapter  6,  Section  3  of  Directive  2006/112/EC  by  ensuring  that  zero-rated  and 
VAT-exempt supplies fall within the scope of that scheme, such as supplies by small 
and  medium-enterprises  (SMEs).  In  addition,  Directive  2006/112/EC  should  be 
amended to clarify the time by which amendments by the taxable person making use 
of  the  special  schemes  can  be  made  to  the  relevant  VAT  returns  across  the  three 
existing simplification schemes; the non-Union  OSS, the Union OSS and the  Import 
OSS (‘IOSS’). This clarification will allow taxable persons registered for the schemes 
to  make corrections to  the relevant  VAT returns up to  the deadline of submission of 
those returns. Finally, the timing of the chargeable event in respect of supplies under 
the  Union  and  non-Union  OSS  simplification  schemes  should  be  clearly  settled  in 
order to avoid differences in the application of the rules amongst the Member States.  

(31)  VAT  identification  is,  in  general,  required  in  every  Member  State  where  taxable 
transactions  take  place.  However,  to  reduce  the  instances  in  which  multiple  VAT 
registrations  are  required,  Directive  (EU)  2017/2455  introduced  into  Directive 
2006/112/EC  a  number  of  measures  to  minimise  the  need  for  multiple  VAT 
registrations.  In  order  to  further  reduce  the  need  for  multiple  VAT  registrations,  a 
number of extension measures have been identified to support the objective of a single 
VAT  registration  in  the  Union.  Rules  should  therefore  be  laid  down  to  provide  for 
these extension measures.  

(32)  Amongst  other  measures,  Directive  (EU)  2017/2455  extended  the  scope  of  the  Mini 
OSS to become a broader OSS, covering all cross-border supplies of services to non-
taxable  persons  taking  place  in  the  Union  and  all  intra-Community  distance  sales  of 
goods. Exceptionally, electronic interfaces, such as marketplaces and platforms, which 
become  deemed  suppliers  for  certain  supplies  of  goods  within  the  Union  can  also 
declare certain domestic supplies of goods in the Union OSS scheme. To support the 
objective  of  a  single  VAT  registration  in  the  Union,  the  scope  of  the  Union  OSS 
scheme  should  be  further  expanded  to  cover  other  supplies  of  goods,  including 
domestic business-to-consumer supplies of goods in the Union by taxable persons who 
are  not  identified  for  VAT  purposes  in  the  Member  State  of  consumption,  ensuring 
that  businesses  do  not  need  to  register  for  VAT  in  each  Member  State  where  such 
supplies  of  goods  to  consumers  take  place.  In  addition,  the  scope  of  the  Union  OSS 
scheme should be expanded to also include domestic supplies of margin scheme goods 
to any person, when those goods are supplied by a taxable person (taxable dealer) who 

12 

13 

Council  Directive  (EU)  2022/542  of  5 April  2022  amending  Directives  2006/112/EC  and  (EU) 
2020/285 as regards rates of value added tax (OJ L 107, 6.4.2022, p. 1). 
Council  Directive  (EU)  2020/285  of  18  February  2020  amending  Directive  2006/112/EC  on  the 
common system of value added tax as regards the special scheme for small enterprises and Regulation 
(EU)  No  904/2010  as  regards  the  administrative  cooperation  and  exchange  of  information  for  the 
purpose  of  monitoring  the  correct  application  of  the  special  scheme  for  small  enterprises  (OJ  L  62, 
2.3.2020, p. 13). 

EN 

32 

  EN 

                                                 
 
is  not  identified  in  the  Member  State  were  such  supplies  of  goods  take  place.  This 
amendment would allow taxable dealers to benefit from the OSS simplifications, and 
allow for the VAT due on those supplies to be declared and paid in one Member State 
of identification via the enlarged Union OSS scheme. 

(33)  VAT is normally charged and accounted for by the supplier of the goods or services. 
However, in certain circumstances Member States may provide that, under the reverse 
charge mechanism, the recipient  of the supply, rather than the supplier, is  obliged to 
account for the VAT due. To further support the objective of a single VAT registration 
in  the  Union,  rules  should  be  laid  down  for  the  mandatory  application  by  Member 
States  of  the  reverse  charge  mechanism  in  situations  where  a  supplier  is  not 
established for VAT purposes in the Member State in which VAT is due. A supplier, 
making  supplies  of  goods  or  services  to  a  person  who  is  identified  for  VAT  in  the 
Member  State  where  the  supply  is  taxable,  should  be  entitled  to  apply  the  reverse 
charge.  For  control  purposes,  such  supplies  should  be  reported  in  the  recapitulative 
statement. 

(34)  Directive  (EU)  2017/2455  introduced  into  Directive  2006/112/EC  the  liability  of 
electronic  interfaces,  such  as  marketplaces  and  platforms,  when  acting  as  deemed 
supplier, where they facilitate certain supplies of goods to consumers in the Union.  In 
terms  of  supplies  of  goods  made  within  the  Union,  the  deemed  supplier  rule  is 
currently  limited to  supplies of goods  to  non-taxable persons, where those goods are 
supplied in the Union by taxable persons not established in the Union. In order to level 
the  playing  field  between  Union  and  non-Union  traders  and  minimise  the  costs  of 
doing business cross-border within the Union, measures should be adopted to further 
reduce the compliance burden for Union sellers that operate via electronic interfaces. 
Under  its  expanded  scope,  the  deemed  supplier  rule  would  include  all  supplies  of 
goods within the Union facilitated by an electronic interface, irrespective of where the 
underlying supplier is established and irrespective of the status of the purchaser.  

(35)  Directive  (EU)  2017/2455  introduced  into  Directive  2006/112/EC  a  specific 
simplification, the IOSS, which was designed to  reduce the VAT compliance burden 
associated with the importation of certain low value goods to consumers in the Union. 
Accordingly, taxable persons who opt to register for the IOSS do not need to register 
for VAT in each Member State in which their eligible imports of goods to consumers 
take  place.  Instead,  the  VAT  due  on  those  supplies  can  be  declared  and  paid  in  one 
Member State via the IOSS scheme. To further support and enhance VAT compliance 
in respect  of certain  imported goods  measures should  be adopted  to  make the use of 
the  IOSS  mandatory  for  electronic  interfaces,  such  as  marketplaces  and  platforms, 
when  they  facilitate  certain  imports  of  goods  to  consumers  in  the  Union.  However, 
taxable  persons  who  operate  electronic  interfaces  and  who  exclusively  facilitate 
domestic supplies in their Member State of establishment should fall outside the scope 
of the measure.  

(36) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  Directive 
2006/112/EC,  powers  should  be  conferred  on  the  Commission  to  better  secure  the 
correct  use and the verification process  of  IOSS  VAT identification numbers  for the 
purposes  of the exemption  provided for in  that  Directive. This empowerment should 
allow the Commission to adopt an implementing act to introduce special measures to 
prevent  certain  forms  of  tax  evasion  or  avoidance.  Such  special  measures  involve, 
inter alia, linking the  unique consignment number  with  the  IOSS VAT identification 
number.  Those  powers  should  be  exercised  in  accordance  with  the  examination 
procedure  referred  to  in  Article 5  of  Regulation  (EU)  No 182/2011  of  the  European 

EN 

33 

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Parliament and of the Council14 and for this purpose the committee should be the one 
established by Article 58 of Regulation (EU) No 904/2010 of the European Parliament 
and of the Council15. 

(37)  The VAT registration of a supplier is required when that supplier is not identified for 
VAT in  the Member State where VAT is  due.  In particular, the transfer of a taxable 
person's  own  goods  to  another  Member  State  for,  inter  alia,  the  purposes  of  that 
person’s e-commerce related activity triggers a need to register in the Member States 
from  and  to  where  the  goods  are  transferred.  In  congruence  with  the  objective  of  a 
single  VAT  registration  in  the  Union,  the  instances  in  which  multiple  VAT 
registrations are required should be further reduced by providing for the application of 
a new scheme in the framework of the OSS schemes, which is specifically designed to 
simplify  the  VAT  compliance  obligations  associated  with  certain  transfers  of  own 
goods. 

(38)  Directive 2006/112/EC provides for a simplified VAT treatment of goods transferred 
under call-off stock arrangements where certain prescribed conditions are met. As the 
OSS  simplification  scheme  for  transfers  of  own  goods  is  comprehensive  and 
encompasses cross-border movements of goods that are currently covered by call-off 
stock  arrangements  under  article  17a  of  that  Directive,  it  is  necessary  to  phase  out 
these arrangements by including an end date prior to the complete removal of the call-
off stock provisions in Directive 2006/112/EC. Therefore, an end date of 31 December 
2024 should be laid down, after which it will no longer be possible to effect any new 
call-off stock arrangements. For call-off stock arrangements commencing on or before 
31 December  2024,  the  relevant  conditions,  including  the  12  month  time  limit  for 
transferring  ownership  of  those  goods  to  the  intended  purchaser,  should  continue  to 
apply. In parallel with the inclusion of this new end date, a new paragraph should be 
inserted in the provisions pertaining to call-off stock arrangements to ensure that those 
arrangements  will  cease  to  apply  on  31 December  2025,  as  they  will  no  longer  be 
required after that date.  

(39)  The margin scheme operates by allowing taxable dealers to pay VAT on the difference 

between the sale price and the purchase price of goods covered by the scheme namely   
second-hand  goods,  works  of  art,  collectors'  items  and  antiques.  To  ensure  that  the 
taxation of those specific supplies occurs in the Member State where the customer is 
established,  has  his  or  her  permanent  address  or  usually  resides,  Directive 
2006/112/EC should be amended to introduce a new place of supply rule. In addition, 
Directive 2006/112/EC should be amended to specifically exclude supplies of margin 
scheme  goods  from  the  mandatory  application  of  the  reverse  charge  mechanism. 
However,  to  support  the  objective  of  a  single  VAT  registration  in  the  Union,  and  to 
minimise  compliance  burdens,  taxable  dealers  that  operate  under  the  margin  scheme 
can opt to register to use the Union OSS scheme to declare and pay the VAT due on 

14 

15 

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 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). 

EN 

34 

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certain supplies of margin scheme goods via that scheme, without the need to register 
in multiple Member States.  

(40) 

In  accordance  with  the  Joint  Political  Declaration  of  28 September  2011  of  Member 
States  and  the  Commission  on  explanatory  documents16,  Member  States  have 
undertaken  to  accompany,  in  justified  cases,  the  notification  of  their  transposition 
measures  with  one  or  more  documents  explaining  the  relationship  between  the 
components  of  a  directive  and  the  corresponding  parts  of  national  transposition 
instruments. With regard to this Directive, the legislator considers the transmission of 
such documents to be justified. 

(41)  Since the objectives of this Directive, namely bringing the VAT system into the digital 
era, cannot sufficiently be achieved by the Member States but can rather, by reason of 
the  need  to  harmonise  and  encourage  the  use  of  Digital  Reporting  Requirements, 
improve the VAT treatment of platforms, and reduce the instances in which a business 
is required to register in other Member States, 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  Directive  does  not  go  beyond  what  is 
necessary in order to achieve those objectives. 

(42)  Directive 2006/112/EC should therefore be amended accordingly, 

HAS ADOPTED THIS DIRECTIVE: 

 Amendments to Directive 2006/112/EC with effect from 1 January 2024 

Article 1 

Directive 2006/112/EC is amended as follows: 

(1) 

Article 17a is amended as follows:  

(a) 

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

‘(a)  goods are dispatched or transported by a taxable person, or by a third 
party on his or her behalf, on or before 31 December 2024, to another 
Member  State  with  a  view  to  those  goods  being  supplied  there,  at  a 
later stage and after arrival, to another taxable person who is entitled 
to  take  ownership  of  those  goods  in  accordance  with  an  existing 
agreement between both taxable persons;’; 

(b) 

the following paragraph 8 is added: 

‘8.  This Article shall cease to apply on 31 December 2025.’; 

(2) 

in Title V, Chapter 3a, the heading is replaced by the following: 

‘CHAPTER 3a 

16 

OJ C 369, 17.12.2011, p. 14. 

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35 

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Threshold for taxable persons making certain supplies of goods covered by Article 33, 
point (a), and certain supplies of services covered by Article 58’; 

(3) 

Article 59c is amended as follows: 

(a) 

in paragraph 1, point (b) is replaced by the following: 

‘(b)   services are supplied to a non-taxable person who is established, has a 
permanent address or usually resides in any Member State other than 
the Member State referred to  in  point (a), or goods are dispatched or 
transported from the Member State referred to in point (a) to another 
Member State; and’; 

(b)  paragraph 3 is replaced by the following: 

‘3.  The  Member  State  referred  to  in  paragraph 1,  point (a),  shall  grant 
taxable persons carrying out supplies eligible under that paragraph the right 
to  opt  for  the  place  of  supply  to  be  determined  in  accordance  with 
Article 33,  point (a),  and  Article 58,  which  shall,  in  any  event,  cover  two 
calendar years.’; 

(4) 

Article 66 is replaced by the following: 

‘Article 66 

1. 
By  way  of  derogation  from  Articles 63,  64  and  65,  Member  States  may 
provide  that  VAT  is  to  become  chargeable  in  respect  of  certain  transactions  or 
certain categories of taxable person, at one of the following times: 

(a) 

 no later than the time the invoice is issued; 

(b) 

 no later than the time the payment is received; 

(c) 

 where an invoice is not issued, or is issued late, within a specified time no later 
than  on  expiry  of  the  time-limit  for  issue  of  invoices  imposed  by  Member 
States pursuant to the second paragraph of Article 222 or where no such time-
limit  has  been  imposed  by  the  Member  State,  within  a  specified  period  from 
the date of the chargeable event. 

 The derogation provided for in paragraph 1 shall not apply to the following 

2. 
supplies:  

(a) 

(b) 

supplies  of  services  covered  by  the  special  scheme  as  set  out  in  Title XII, 
Chapter 6, Section 2 where those supplies are  carried out  by  a taxable person 
who is permitted to use that scheme in accordance with Article 359; 

supplies  covered  by  the  special  scheme  as  set  out  in  Title XII,  Chapter 6, 
Section 3,  where  those  supplies  are  carried  out  by  a  taxable  person  who  is 
permitted to use that scheme in accordance with Article 369b; 

(c) 

supplies  of  services  in  respect  of  which  VAT  is  payable  by  the  customer 
pursuant to Article 196; 

(d) 

supplies or transfers of goods referred to in Article 67.’; 

(5) 

in Article 167a, the first paragraph is replaced by the following: 

‘Member  States  may  provide,  within  an  optional  scheme  that  the  right  of 
deduction  of  a  taxable  person  whose  VAT  solely  becomes  chargeable  in 

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36 

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accordance with Article 66(1), point (b), be postponed until the VAT on the goods 
or services supplied to that person has been paid to the supplier.’; 

(6) 

Article 217 is replaced by the following: 

‘Article 217 

For  the  purposes  of  this  Directive,  ‘electronic  invoice’  shall  mean  an  invoice  that 
contains  the  information  required  by  this  Directive,  and  which  has  been  issued, 
transmitted  and  received  in  a  structured  electronic  format  which  allows  for  its 
automatic and electronic processing.’; 

(7) 

Article 218 is replaced by the following: 

Article 218 

1.  For  the  purposes  of  this  Directive,  Member  State  shall  accept  documents  or 
messages on paper or in electronic form as invoices if they meet the conditions laid 
down in this Chapter. 

2.  Member  States  may  impose  the  obligation  to  issue  electronic  invoices.  Member 
States  imposing  this  obligation  shall  allow  for  the  issuance  of  electronic  invoices 
which comply with the European standard on electronic invoicing and the list of its 
syntaxes  pursuant  to  Directive  2014/55/EU  of  the  European  Parliament  and  of  the 
Council*.  The  issuance  of  electronic  invoices  by  taxable  persons  and  their 
transmission shall not be subject to a prior mandatory authorisation or verification by 
the tax authorities, without prejudice to the special measures authorised under Article 
395 and already implemented at the time this Directive enters into force. 

*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).’; 

(8) 

in Article 226, point 7a is replaced by the following: 

 ‘(7a) where the VAT becomes chargeable at the time when the payment is 
received  in  accordance  with  Article 66(1),  point (b),  and  the  right  of 
deduction arises at the time the deductible tax becomes chargeable, the 
mention ‘Cash accounting’; 

(9) 

(10) 

(11) 

Article 232 is deleted; 

Article 237 is deleted; 

Article 359 is replaced by the following: 

‘Article 359 

Member  States  shall  permit  any  taxable  person  not  established  within  the 
Community supplying services to a non-taxable person to use this special scheme. 
That scheme shall apply to all those services supplied within the Community.’; 

(12) 

in Article 369j, the first paragraph is replaced by the following: 

‘The taxable person making use of this special scheme may not, in respect of his 
or her taxable activities covered by this special scheme, deduct VAT incurred in 

EN 

37 

  EN 

 
 
the  Member  States  of  consumption  pursuant  to  Article 168  of  this  Directive. 
Notwithstanding  Article 1,  point (1),  of  Directive  86/560/EEC,  Article 2, 
point (1), Article 3, and Article 8(1), point (e), of Directive 2008/9/EC, the taxable 
person  in  question  shall  be  refunded  in  accordance  with  those  Directives. 
Article 2(2)  and  (3)  and  Article 4(2)  of  Directive  86/560/EEC  shall  not  apply  to 
refunds relating to goods covered by this special scheme.’; 

(13) 

in Article 369w, the first paragraph is replaced by the following: 

‘The taxable person making use of this special scheme may not, in respect of his 
or her taxable activities covered by this special scheme, deduct VAT incurred in 
the  Member  States  of  consumption  pursuant  to  Article 168  of  this  Directive. 
Notwithstanding  Article 1,  point (1),  of  Directive  86/560/EEC  and  Article 2, 
point (1), Article 3, and Article 8(1), point (e), of Directive 2008/9/EC, the taxable 
person  in  question  shall  be  refunded  in  accordance  with  those  Directives. 
Article 2(2) and (3), and Article 4(2) of Directive 86/560/EEC shall not apply to 
refunds relating to goods covered by this special scheme.’; 

Article 2 

Amendments to Directive 2006/112/EC with effect from 1 January 2025 

Directive 2006/112/EC is amended as follows: 

(1) 

in Article 14(4), point (1)(a), is replaced by the following: 

‘(a)   the supply of goods is carried out for a taxable person, or a non-taxable legal 
person,  whose  intra-Community  acquisitions  of  goods  are  not  subject  to 
VAT  pursuant  to  Article 3(1)  or  for  any  other  non-taxable  person;  or  the 
supply is a supply of second-hand goods, works of art, collectors’ items or 
antiques, supplied by a taxable dealer to any other taxable person, where the 
goods    are  subject  to  VAT  in  accordance  with  the  special  arrangements 
provided for in Title XII Chapter 4, Section 2,  of this Directive.’;  

(2) 

Article 14a is amended as follows: 

(a) 

paragraph 2 is replaced by the following: 

‘2.   Where  a  taxable  person  facilitates,  through  the  use  of  an  electronic 
interface  such  as  a  marketplace,  platform,  portal  or  similar  means,  the 
supply  of  goods  within  the  Community  by  a  taxable  person,  the  taxable 
person  who  facilitates  the  supply  shall  be  deemed  to  have  received  and 
supplied those goods.’; 

(b) 

the following paragraphs 3 and 4 are added: 

‘3.  Where  a  taxable  person  facilitates,  through  the  use  of  an  electronic 
interface  such  as  a  marketplace,  platform,  portal  or  similar  means,  the 
transfer of goods to another Member State in accordance with Article 17(1) 
by  a  taxable  person,  other  than  capital  goods  as  defined  by  the  Member 
State  to  which  the  goods  are  dispatched  or  transported  in  accordance  with 
Article 189, point (a), or goods in relation to which there is no full right of 
deduction  in  that  Member  State,  the  taxable  person  who  facilitates  the 
transfer shall be deemed to have received and supplied those goods. 

EN 

38 

  EN 

 
4.  Where  a  taxable  person  established  only  in  one  Member  State 
facilitates through the use of an electronic interface such as a marketplace, 
platform,  portal  or  similar  means,  supplies  of  goods  only  in  that  Member 
State  without  dispatch  or  transport,  or  with  dispatch  or  transport  which 
begins  and  ends  in  that  Member  State,  that  taxable  person  shall  not  be 
deemed to have received and supplied those goods.’; 

(3) 

the following Articles 28a is inserted: 

‘Article 28a 

Notwithstanding Article 28, a taxable person who facilitates, through the use of an 
electronic  interface  such  as  a  platform,  portal,  or  similar  means,  the  supply  of 
short-term  accommodation  rental,  as  referred  to  in  Article 135(3),  or  passenger 
transport,  shall  be  deemed  to  have  received  and  supplied  those  services 
themselves where the person providing those services is one of the following: 

(a) 

a  non-established  person  who  is  not  identified  for  VAT  purposes  in  a  Member 
State; 

(b) 

a non-taxable person; 

(c) 

a  taxable  person  carrying  out  only  supplies  of  goods  or  services  in  respect  of 
which VAT is not deductible;  

(d) 

a non-taxable legal person; 

(e) 

(f) 

a taxable person subject to the common flat-rate scheme for farmers; 

a taxable person subject to the special scheme for small enterprises.’; 

(4) 

(5) 

Article 35 is deleted; 

in Title V, Chapter 1, the following Section 5 is added: 

‘Section 5 

Supply of works of art and antiques that are supplied under the special arrangements 
for taxable dealers 

Article 39a 

The  place  of  supply  of  works  of  art  and  antiques  that  are  supplied  without 
dispatch or transport, or where the dispatch or transport of those goods begins and 
ends  in  the  same  Member  State,  and  that  are  supplied  in  accordance  with  the 
special scheme provided for in Title XII, Chapter 4, Section 2, subsection 1, shall 
be the place where the customer is established, has his or her permanent address, 
or usually resides.’; 

(6) 

The following Article 46a is inserted: 

‘Article 46a 

The place of supply of the facilitation service provided to a non-taxable person by a 
platform, portal or similar means shall be the place where the underlying transaction 
is supplied in accordance with this Directive. 

(7) 

in Article 135, the following paragraph 3 is added: 

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39 

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‘3.  The uninterrupted rental of accommodation for a maximum of 45 days with 
or without the provision of other ancillary services shall be regarded as having a 
similar function to the hotel sector.’; 

(8) 

Article 136a is replaced by the following: 

‘Article 136a 

Where a taxable person is deemed to have received and supplied goods in accordance 
with  Article  14a(2)  or  Article  14a(3),  Member  States  shall  exempt  the  supply  of 
those goods to that taxable person.’; 

(9) 

the following Article 136b is inserted: 

‘Article 136b 

Where  a  taxable  person  is  deemed  to  have  received  and  supplied  services  in 
accordance  with  Article 28a,  Member  States  shall  exempt  the  supply  of  those 
services to that taxable person.’; 

(10) 

in Article 143, the following paragraph 1a is inserted: 

‘1a.  For  the  purposes  of  the  exemption  provided  for  in  paragraph 1,  point (ca), 
the Commission shall adopt an implementing act to introduce special measures to 
prevent certain forms of tax evasion or avoidance by, inter alia, linking the unique 
consignment  number  with  the  corresponding  VAT  identification  number  as 
referred to in Article 369q.  

That implementing act shall be adopted in accordance with the examination procedure 
referred  to  in  Article 5  of  Regulation  (EU)  No 182/2011*  and  for  that  purpose  the 
committee  shall  be  the  committee  established  by  Article 58  of  Regulation  (EU) 
No 904/2010±. 

* 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  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).’; 

(11) 

the following Article 172a is inserted: 

‘Article 172a 

Where  a  taxable  person  is  deemed  to  have  received  and  supplied  services  in 
accordance with Article 28a, those supplies shall not affect the right of deduction 
of that taxable person, regardless of whether the supply is one for which VAT is 
deductible or not.’; 

(12) 

Article 194 is replaced by the following: 

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40 

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‘Article 194 

 1.  Without  prejudice to  Articles 195 and 196, where the taxable supply 
of goods or services is carried out by a taxable person who is not established 
in  the Member State in  which the VAT is  due,  Member States shall  allow 
that the taxable person liable for payment of VAT is the person to whom the 
goods  or  services  are  supplied  if  that  person  is  already  identified  in  that 
Member State.  

Paragraph 1  shall  not  apply  to  a  supply  of  goods  carried  out  by  a 
2. 
taxable  dealer  as  defined  in  Article 311(1),  point (5),  where  the  goods  are 
subject to VAT in accordance with the special arrangements provided for in 
Section 2 of Chapter 4 of Title XII of this Directive.’; 

(13) 

in Article 222 the first paragraph is replaced by the following: 

‘For  supplies  of  goods  carried  out  in  accordance  with  the  conditions  specified  in 
Article  138  or  for  supplies  of  goods  or  services  for  which  VAT  is  payable  by  the 
customer pursuant to Articles 194 and 196, an invoice shall be issued no later than on 
the fifteenth day of the month following that in which the chargeable event occurs.’  

(14) 

Article 242a is amended as follows: 

(a) 

the following paragraph 1a is inserted: 

‘1a.  Where  a  taxable  person  facilitates,  through  the  use  of  an  electronic 
interface such as a platform, portal or similar means, the supply of short-term 
accommodation  rental  or  passenger  transport  services,  and  that  person  is  not 
considered  to  have  received  and  supplied  those  services  themselves  under 
Article 28a,  the  taxable  person  who  facilitates  the  supply  shall  be  obliged  to 
keep records of those supplies.’; 

(b)  paragraph 2 is replaced by the following: 

The records referred to in paragraphs 1 and 1a must be made available 

‘2. 
electronically on request to the Member States concerned. 

Those records must be kept for a period of 10 years from the end of the year 
during which the transaction was carried out.’; 

(15) 

in Article 262, paragraph 1, point (c) is replaced by the following: 

‘(c)   the taxable persons, and the non-taxable legal persons identified for VAT 
purposes,  to  whom  that taxable person identified for VAT purposes has 
supplied  goods  or  services,  other  than  goods  or  services  that  are 
exempted  from  VAT  in  the  Member  State  where  the  transaction  is 
taxable,  for  which  the  recipient  is  liable  to  pay  the  tax  pursuant  to 
Articles 194 and 196.’; 

(16) 

in Article 306, the following paragraph 3 is added: 

‘3.  The special scheme referred to in paragraph 1 of this Article shall not apply 
to supplies made under Article 28a.’; 

(17) 

in Title XII, the heading of Chapter 6, is replaced by the following: 

‘CHAPTER 6 

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41 

  EN 

Special schemes for taxable persons supplying services to non-taxable persons or 
making distance sales of goods, or certain domestic supplies of goods or transfers of own 
goods’; 

(18) 

Article 365 is replaced by the following: 

‘Article 365 

The  VAT  return  shall  show  the  individual  VAT  identification  number  for  the 
application of this special scheme and, for each Member State of consumption in 
which  VAT  is  due,  the  total  value,  exclusive  of  VAT,  of  supplies  of  services 
covered  by  this  special  scheme  for  which  the  chargeable  event  has  occurred 
during  the  tax  period  and  total  amount  per  rate  of  the  corresponding  VAT.  The 
applicable  rates  of  VAT  and  the  total  VAT  due  must  also  be  indicated  on  the 
return. 

Where any amendments to the VAT return are required after the date on which the 
return  was  required  to  be  submitted  in  accordance  with  Article 364,  such 
amendments shall be included in a subsequent return within three years of the date 
on which the initial return was required to be submitted pursuant to Article 364. 
That  subsequent  VAT  return  shall  identify  the  relevant  Member  State  of 
consumption, the tax period and the amount of VAT for which any amendments 
are required.’; 

(19) 

in Title XII, Chapter 6, the heading of Section 3 is replaced by the following: 

‘Section 3 

Special scheme for intra-Community distance sales of goods, for certain supplies of 
goods within a Member State made by a taxable person not identified for VAT purposes 
in that Member State or by electronic interfaces facilitating those supplies and for 
services supplied to a non-taxable person by taxable persons established within the 
Community but not in the Member State of consumption’; 

(20) 

in Article 369a, point (3) is amended as follows: 

(a) 

point (c) is replaced by the following: 

‘(c) 

in  the  case  of  the  supply  of  goods  made  by  a  taxable  person 
facilitating those supplies in accordance with Article 14a(2) where the 
dispatch  or  transport  of  the  goods  supplied  begins  and  ends  in  the 
same  Member  State,  where  those  goods  are  supplied  to  a  taxable 
person  or  a  non-taxable  legal  person,  whose  intra-Community 
acquisitions of goods are not subject to VAT pursuant to Article 3(1), 
or to any other non-taxable person, that Member State;’; 

(b) 

the following points (d) and (e) are added: 

‘(d)   in the case of the supply of goods in accordance with Articles 36, 37 
and 39, where those goods are supplied to a taxable person or a non-
taxable  legal  person,  whose  intra-Community  acquisitions  of  goods 
are not subject to VAT pursuant to Article 3(1), or to any other non-
taxable  person,  the  Member  State  in  which  the  supply  is  deemed  to 
take place; 

(e)  

in the case of the supply of goods without dispatch or transport of the 
goods, or where the dispatch of the goods supplied begins and ends in 
the  same  Member  State  where  those  goods  are  supplied  to  a  taxable 

EN 

42 

  EN 

person  or  to  a  non-taxable  legal  person  whose  intra-Community 
acquisitions of goods are not subject to VAT pursuant to Article 3(1), 
or to any other non-taxable person, that Member State.’; 

(21) 

Article 369b is replaced by the following: 

‘Article 369b 

Member  States  shall  permit  the  following  taxable  persons  to  use  this  special 
scheme: 

(a) 

a taxable person carrying out intra-Community distance sales of goods; 

(b)  without  prejudice  to  Article  14a(2),  for  the  purpose  of  this  special  scheme,  a 
taxable  person  facilitating  the  supply  of  goods  in  accordance  with  Article 
14a(2) without dispatch or transport or where the dispatch of transport begins 
and  ends  in  the  same  Member  State,  where  those  goods  are  supplied  to  a 
taxable  person  or  to  a  non-taxable  legal  person,  whose  intra-Community 
acquisitions of goods are not subject to VAT pursuant to Article 3(1), or to any 
other non-taxable person. 

(c) 

(d) 

a taxable person not established in the Member State of consumption supplying 
services to a non-taxable person; 

a  taxable  person  not  identified  in  the  Member  State  in  which  the  goods  are 
subject to VAT, supplying goods in accordance with Articles 36, 37 and 39 to a 
taxable  person  or  a  non-taxable  legal  person,  whose  intra-Community 
acquisitions of goods are not subject to VAT pursuant to Article 3(1) or to any 
other non-taxable person; 

(e) 

a  taxable  person  not  identified  in  the  Member  State  in  which  the  goods  are 
subject  to  VAT,  supplying  goods  without  dispatch  or  transport  or  where  the 
dispatch begins and ends in the same Member State to either of the following: 

(a) 

(b) 

a taxable person or a non-taxable legal  person,  whose intra-Community 
acquisitions of goods are not subject to VAT pursuant to Article 3(1) or 
to any other non-taxable person; 

any  other  taxable  person  where  the  supply  is  a  supply  of  second-hand 
goods,  works  of  art,  collectors’  items  or  antiques,  where  the  goods  are 
subject  to  VAT  in  accordance  with  the  margin  scheme  provided  for  in 
Articles 312 to 325. 

This  special  scheme  applies  to  all  those  goods  or  services  supplied  in  the 
Community by the taxable person concerned.’ 

(22) 

Article 369g is amended as follows: 

(a) 

paragraph 1 is replaced by the following:  

‘1.  The VAT return shall show the VAT identification number referred to 
in Article 369d and, for each Member State of consumption, the total value 
exclusive  of  VAT,  the  applicable  rates  of  VAT,  where  relevant,  the  total 
amount  per  rate  of  the  corresponding  VAT,  where  relevant,  and  the  total 
VAT  due  in  respect  of  the  following  supplies  covered  by  this  special 
scheme for which the chargeable event has occurred during the tax period: 

(a) 

intra-Community distance sales of goods; 

EN 

43 

  EN 

(b)  without  prejudice  to  Article 14a(2),  for  the  purpose  of  this  special 
scheme,  supplies  of  goods  in  accordance  with  Article 14a(2)  where  the 
dispatch or transport of those goods begins and ends in the same Member 
State,  where  those  goods  are  supplied  to  a  taxable  person  or  a  non-
taxable  legal  person,  whose  intra-Community  acquisitions  of  goods  are 
not  subject  to  VAT pursuant  to  Article 3(1) or  to any  other non-taxable 
person; 

(c) 

(d) 

(e) 

supplies of services; 

supplies of goods in accordance with Articles 36, 37 and 39, where those 
goods  are  supplied  to  a  taxable  person  or  a  non-taxable  legal  person, 
whose  intra-Community  acquisitions  of  goods  are  not  subject  to  VAT 
pursuant to Article 3(1) or to any other non-taxable person; 

supplies  of  goods  without  dispatch  or  transport,  or  where  the  dispatch 
begins  and  ends  in  the  same  Member  State,  where  those  goods  are 
supplied to  a taxable person or a non-taxable legal  person, whose intra-
Community  acquisitions  of  goods  are  not  subject  to  VAT  pursuant  to 
Article 3(1) or to any other non-taxable person. 

The  VAT  return  shall  also  include  amendments  relating  to  previous  tax 
periods as provided for in paragraph 4 of this Article.’; 

(b)  paragraph 2 is replaced by the following: 

‘2.  Where goods are dispatched or transported in or from Member States 
other  than  the  Member  State  of  identification,  the  VAT  return  shall  also 
include  the  total  value  exclusive  of  VAT,  the  applicable  rates  of  VAT, 
where relevant, the total amount per rate of the corresponding VAT, where 
relevant, and the total VAT due in respect of the following supplies covered 
by  this  special  scheme,  for  each  Member  State  where  such  goods  are 
dispatched or transported in or from:  

(a) 

(b) 

(c) 

(d) 

intra-Community  distance  sales  of  goods  other  than  those  made  by  a 
taxable person in accordance with Article 14a(2);  

intra-Community distance sales of goods and supplies of goods where the 
dispatch or transport of those goods begins and ends in the same Member 
State, made by a taxable person in accordance with Article 14a(2) where 
those  goods  are  supplied  to  a  taxable  person  or  a  non-taxable  legal 
person, whose intra-Community acquisitions of goods are not subject to 
VAT pursuant to Article 3(1) or to any other non-taxable person; 

supplies of goods in accordance with Articles 36, 37 and 39, where those 
goods  are  supplied  to  a  taxable  person  or  a  non-taxable  legal  person, 
whose  intra-Community  acquisitions  of  goods  are  not  subject  to  VAT 
pursuant to Article 3(1) or to any other non-taxable person; 

supplies  of  goods  to  a  taxable  person  or  a  non-taxable  legal  person, 
whose  intra-Community  acquisitions  of  goods  are  not  subject  to  VAT 
pursuant  to  Article 3(1)  or  to  any  other  non-taxable  person,  where  the 
dispatch begins and ends in the same Member State. 

In relation to the supplies referred to in point (a), the VAT return shall also 
include  the  individual  VAT  identification  number  or  the  tax  reference 

EN 

44 

  EN 

number allocated by each Member State where such goods are dispatched or 
transported from, if available.  

In relation to the supplies referred to in point (b), the VAT return shall also 
include  the  individual  VAT  identification  number  or  the  tax  reference 
number allocated by each Member State where such goods are dispatched or 
transported from, if available.  

The VAT return shall include the information referred to in this paragraph 
broken down by Member State of consumption.’; 

(c) 

the following paragraph 2a is inserted: 

‘2a.  The  requirement  to  provide  the  information  set  out  in  paragraph 2 
shall  also  apply  to  supplies  of  goods  without  dispatch  or  transport  taking 
place in a Member State other than the Member State of identification.’; 

(d)  paragraph 3 is replaced by the following: 

‘3.  Where  the  taxable  person  supplying  services  covered  by  this  special 
scheme has one or more fixed establishments other than that in the Member 
State of identification, from which the services are supplied, the VAT return 
shall also include the total value exclusive of VAT, the applicable rates of 
VAT, where relevant, the total amount per rate of the corresponding VAT, 
where  relevant,  and  the  total  VAT  due  of  such  supplies,  for  each  Member 
State in which that person has an establishment, together with the individual 
that 
the 
VAT 
establishment, broken down by Member State of consumption.’; 

tax  reference  number  of 

identification  number  or 

(e) 

paragraph 4 is replaced by the following: 

‘4.  Where any amendments to the VAT return are required after the date 
on  which  the  return  was  required  to  be  submitted  in  accordance  with 
Article 369f,  such  amendments  shall  be  included  in  a  subsequent  return 
within  3  years  of  the  date  on  which  the  initial  return  was  required  to  be 
submitted  pursuant  to  Article 369f.  That  subsequent  VAT  return  shall 
identify the  relevant  Member State of consumption, the tax period and the 
amount of VAT for which any amendments are required.’; 

(23) 

in Article 369m, the following paragraph 4 is added: 

‘4.  Notwithstanding  paragraph  1,  Member  States  shall  require  the  taxable 
person  acting  as  deemed  supplier  in  accordance  with  Article 14a(1)  to  use  this 
special  scheme  for  all  his  or  her  distance  sales  of  goods  imported  from  third 
territories or third countries.  

(24) 

Article 369p is amended as follows: 

(a) 

in paragraph 1, the following point (e) is added: 

 ‘(e)  status  as  taxable  person  deemed  to  have  received  and  supplied 

goods in accordance with Article 14a(1).’; 

(b) 

in paragraph 3, the following point (f) is added:  

 ‘(f)   status  as  taxable  person  deemed  to  have  received  and  supplied 

goods in accordance with Article 14a(1).’; 

(25) 

Article 369r is amended as follows: 

EN 

45 

  EN 

(a) 

in paragraph 1, point (d) is replaced by the following: 

 ‘(d)   if  that  taxable  person  persistently  fails  to  comply  with  the  rules 
relating to this special scheme and insofar the use of this scheme is not 
obligatory in accordance with Article 369m(4).’, 

(b) 

in paragraph 3, point (d) is replaced by the following:  

‘(d)   if  that  taxable  person  persistently  fails  to  comply  with  the  rules 
relating to this special scheme and insofar as the use of this scheme is 
not obligatory in accordance with Article 369m(4);’, 

(c) 

a new paragraph 4 is inserted: 

‘4.  Where  the  use  of  the  special  scheme  is  obligatory  in  accordance  with 
Article 369m(4),  Member  States  of  identification  shall  adopt  appropriate 
measures,  other  than  deletion  from  the  identification  register,  where  the 
taxable  person  persistently  fails  to  comply  with  the  rules  relating  to  this 
special scheme.’; 

(26) 

in Article 369t, paragraph 2 is replaced by the following: 

‘2.  Where  any  amendments  to  the  VAT  return  are  required  after  the  date  on 
which  the  return  was  required  to  be  submitted  in  accordance  with  Article  369s, 
such  amendments  shall  be  included  in  a  subsequent  return  within  three  years  of 
the  date  on  which  the  initial  return  was  required  to  be  submitted  pursuant  to 
Article 369s.  That  subsequent  VAT  return  shall  identify  the  relevant  Member 
State  of  consumption,  the  tax  period  and  the  amount  of  VAT  for  which  any 
amendments are required.’; 

(27) 

in Title XII, Chapter 6, the following Section 5 is added: 

‘Section 5 

Special scheme for transfers of own goods 

Article 369xa 

For  the  purposes  of  this  Section,  and  without  prejudice  to  other  Community 
provisions, the following definitions shall apply: 

(1) 

‘transfer  of  own  goods’  means  the  transfer  of  goods  to  another  Member 
State  in  accordance  with  Article 17(1),  including  transfers  pursuant  to 
Article 14a(3), and shall not include transfers of capital goods as defined by 
the  Member  State  to  which  the  goods  are  dispatched  or  transported  in 
accordance with Article 189(a) or goods in relation to which there is no full 
right of deduction in that Member State. 

(2) 

‘Member State of identification’ means the Member State in the territory of 
which  the  taxable  person  has  established  his  or  her  business  or,  if  that 
taxable  person  has  not  established  his  or  her  business  in  the  Community, 
where that taxable person has a fixed establishment. 

Where a taxable person has not established his or her business in the Community, 
but  has  more  than  one  fixed  establishment  therein,  the  Member  State  of 
identification  shall  be  the  Member  State  with  a  fixed  establishment  where  that 
taxable person indicates that he or she will make use of this special scheme. The 

EN 

46 

  EN 

taxable person shall be bound by that decision for the calendar year concerned and 
the two calendar years following. 

Where a taxable person has not established his or her business in the Community 
and has no fixed establishment therein, the Member State of identification shall be 
the Member State in which the dispatch or transport of the goods begins. Where 
there  is  more  than  one  Member  State  in  which  the  dispatch  or  transport  of  the 
goods  begins,  the  taxable  person  shall  indicate  which  of  those  Member  States 
shall be the Member State of identification. The taxable person shall be bound by 
that  decision  for  the  calendar  year  concerned  and  the  two  calendar  years 
following. 

Article 369xb 

Member States shall permit any taxable persons making transfers of own goods to 
use this special scheme.  

This  special  scheme  shall  apply  to  all  transfers  of  own  goods  carried  out  by  a 
taxable person registered for this scheme. 

Article 369xc 

A  taxable  person  shall  state  to  the  Member  State  of  identification  when  that 
taxable person commences and ceases his or her taxable activities covered by this 
special scheme, or changes those activities in such a way that that taxable person 
no  longer  meets  the  conditions  necessary  for  use  of  this  special  scheme.  That 
taxable person shall communicate that information electronically. 

Article 369xd 

A  taxable  person  making  use  of  this  special  scheme  shall,  for  the  taxable 
transactions carried out under this scheme, be identified for VAT purposes in the 
Member State of identification only. For that purpose the Member State shall use 
the individual VAT identification number already allocated to the taxable person 
in respect of his or her obligations under the internal system. 

Article 369xe 

The Member State of identification shall exclude a taxable person from the special 
scheme in any of the following cases: 

(a) 

(b) 

(c) 

(d) 

if that taxable person  notifies  that he or she  no longer carries out  transfers of 
own goods covered by this special scheme; 

if  it  may  otherwise  be  assumed  that  that  taxable  person’s  taxable  activities 
covered by this special scheme have ceased; 

if that taxable person no longer meets the conditions necessary for use of this 
special scheme; 

if that taxable person persistently fails to comply with the rules relating to this 
special scheme. 

EN 

47 

  EN 

Article 369xf 

The taxable person making use of this special scheme shall submit by electronic 
means  to  the  Member  State  of  identification  a  VAT  return  for  each  month, 
whether  or  not  transfers  of  goods  covered  by  this  special  scheme  have  been 
carried out. The VAT return shall be submitted by the end of the month following 
the end of the tax period covered by the return. 

Article 369xg 

1. 
The  VAT  return  shall  show  the  VAT  identification  number  referred  to  in 
Article  369xd  and,  for  each  Member  State  to  which  goods  are  dispatched  or 
transferred,  the  total  value  exclusive  of  VAT  of  the  transfers  covered  by  this 
special scheme for which the chargeable event has occurred during the tax period. 

The VAT return shall also include amendments relating to previous tax periods as 
provided in paragraph 3 of this Article. 

2.  Where goods are dispatched or transported from Member States other than 
the  Member  State  of  identification,  the  VAT  return  shall  also  include  the  total 
value exclusive of VAT of the transfers covered by this special scheme, for each 
Member State where such goods are dispatched or transported from.  

The  VAT  return  shall  also  include  the  individual  VAT  identification  number  or 
the tax reference number allocated by each Member State where such goods are 
dispatched  or  transported  from,  if  available.  The  VAT  return  shall  include  the 
information referred to in this paragraph broken down by Member State where the 
goods are dispatched or transported to. 

3.  Where  any  amendments  to  the  VAT  return  are  required  after  the  date  on 
which the return was  required to  be submitted in accordance with  Article 369xf, 
such  amendments  shall  be  included  in  a  subsequent  return  within  three  years  of 
the  date  on  which  the  initial  return  was  required  to  be  submitted  pursuant  to 
Article 369xf.  That  subsequent  VAT  return  shall  identify  the  relevant  Member 
State  where  the  goods  are  dispatched  or  transported  to,  the  tax  period  and  the 
taxable amount for which any amendments are required. 

1. 

The VAT return shall be made out in euro. 

Article 369xh 

Member States which have not adopted the euro may require the VAT return to be 
made out in their national currency. 

If the supplies have been made in other currencies, the taxable person making use 
of this special scheme shall, for the purposes of completing the VAT return, use 
the exchange rate applying on the last date of the tax period.  

2. 
The conversion shall be made by applying 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. 

For the purpose of this special scheme, the intra-Community acquisition of goods 
in the Member State where the goods are dispatched or transported to, is exempt. 

Article 369xi 

EN 

48 

  EN 

Article 369xj 

The taxable person making use of this special scheme may not, in respect of his or 
her taxable activities covered by this special scheme, declare in the VAT return of 
that  scheme  the  VAT  deductible  pursuant  to  Article 168  of  this  Directive  in  the 
Member  States  to  or  from  which  the  goods  are  dispatched  or  transported. 
Notwithstanding  Article 1,  point (1),  of  Directive  86/560/EEC,  Article 2, 
point (1), Article 3 and Article 8(1), point (e), of Directive 2008/9/EC, the taxable 
person  in  question  shall  be  refunded  in  accordance  with  those  Directives. 
Article 2(2)  and  (3)  and  Article 4(2)  of  Directive  86/560/EEC  shall  not  apply  to 
refunds relating to goods covered by this special scheme.  

If the taxable person making use of this special scheme is required to be registered 
in a Member State for activities not covered by this special scheme, he or she shall 
deduct  VAT  incurred  in  that  Member  State  in  respect  of  goods  or  services 
supplied  to  him  or  her  in  that  Member  State  in  the  VAT  return  to  be  submitted 
pursuant to Article 250. 

Article 369xk 

1.   The taxable person making use of this special scheme shall keep records of the 
transfers  of  own  goods  covered  by  this  special  scheme.  Those  records  must  be 
sufficiently detailed to enable the tax authorities of the Member States from and to 
which the good have been dispatched or transported to verify that the VAT return 
is correct. 

2. 
The records referred to in paragraph 1 must be made available electronically 
on request to the Member State from and to which the goods have been dispatched 
or transported and to the Member State of identification. 

Those records must be kept for a period of 5 years from 31 December of the year 
during which the transfer of own goods was carried out.’. 

Amendments to Directive 2006/112/EC with effect from 1 January 2026 

Article 3 

Directive 2006/112/EC is amended as follows: 

(1) 

(2) 

in Article 243, paragraph 3 is deleted; 

in Article 262, paragraph 2 is deleted; 

Amendments to Directive 2006/112/EC with effect from 1 January 2028 

Article 4 

Directive 2006/112/EC is amended as follows: 

(1) 

in Article 42, point (b) is replaced by the following: 

‘(b) 

the person acquiring the goods has complied with the obligations laid down 
in  Article 265  relating  to  the  transmission  of  data  on  the  intra-Community 
acquisitions.’; 

(2) 

in Article 138, paragraph 1a is replaced by the following: 

EN 

49 

  EN 

‘1a.  The  exemption  provided  for  in  paragraph 1  of  this  Article  shall  not  apply 
where  the  supplier  has  not  complied  with  the  obligation  provided  for  in 
Articles 262 and 263 to  communicate the data on intra-Community transactions, 
or  that  data  transmitted  does  not  contain  the  correct  information  concerning  the 
supply  as  required  under  Article 264,  unless  the  supplier  can  duly  justify  any 
shortcomings to the satisfaction of the competent authorities.’; 

(3) 

Article 218 is replaced by the following: 

For the purposes of this Directive, invoices shall be issued in a structured electronic 
format. However, Member States may accept documents on paper or other formats as 
invoices for transactions not subject to the reporting obligations laid down in Title XI 
Chapter 6. Member States  shall allow  for the  issuance of electronic invoices which 
comply  with  the  European  standard  on  electronic  invoicing  and  the  list  of  its 
syntaxes  pursuant  to  Directive  2014/55/EU  of  the  European  Parliament  and  of  the 
Council.  The  issuance  of  electronic  invoices  by  taxable  persons  and  their 
transmission shall not be subject to a prior mandatory authorisation or verification by 
the tax authorities.’; 

(4) 

in Article 222, the first paragraph is replaced by the following: 

‘For  supplies  of  goods  carried  out  in  accordance  with  the  conditions  specified  in 
Article  138  or  for  supplies  of  goods  or  services  for  which  VAT  is  payable  by  the 
customer pursuant to Articles 194 and 196, an invoice shall be issued no later than 2 
working days following the chargeable event.’; 

(5) 

(6) 

Article 223 is deleted; 

In Article 226, the following points (16), (17) and (18) are added: 

 ‘(16) in  the  case  of  a  corrective  invoice,  the  sequential  number  which 

identifies the corrected invoice, as referred to in point (2); 

(17)  the  IBAN  number  of  the  supplier’s  bank  account  to  which  the 
payment  for  the  invoice  will  be  credited.  If  the  IBAN  number  is  not 
available,  any  other  identifier  which  unambiguously  identifies  the 
bank account to which the invoice will be credited; 

(18)  The date on which the payment of the supply of goods or services is 
due  or,  where  partial  payments  are  agreed,  the  date  and  amount  of 
each payment.’; 

(7) 

in Title XI, the heading of Chapter 6 is replaced by the following: 

‘CHAPTER 6 

Digital reporting requirements’; 

(8) 

in Title XI, Chapter 6 the following heading of Section 1 is inserted: 

‘Section 1 

Digital reporting requirements for cross-border supplies of goods and services for 
consideration made between taxable persons’;  

(9) 

Article 262 is amended as follows: 

(a) 

in paragraph 1, the introductory wording is replaced by the following: 

‘Every  taxable  person  identified  for  VAT  purposes  shall  submit  to  the 
Member  State  in  which  that  person  is  established  or  identified  for  VAT 

EN 

50 

  EN 

purposes the following data on each supply and transfer of goods carried out 
in  accordance  with  Article 138,  on  each  intra-Community  acquisition  of 
goods  in  accordance  with  Article 20  and  each  supply  of  a  service  that  is 
taxable  in  a  Member  State  other  than  that  in  which  the  supplier  is 
established:’; 

(10) 

Article 263 is replaced by the following: 

‘Article 263 

1.  The  data  referred  to  in  Article  262(1)  shall  be  transmitted  for  each  individual 
transaction  carried  out  by  the  taxable  person  no  later  than  2  working  days  after 
issuing the invoice, or after the date the invoice had to be issued where the taxable 
person  does  not  comply  with  the  obligation  to  issue  an  invoice.  The  data  shall  be 
transmitted by the taxable person or by a third party on that taxable person’s behalf. 
Member States shall provide for the electronic means for submitting such data.  

Member  States  shall  allow  for  the  transmission  of  data  from  electronic  invoices 
which comply with the European standard on electronic invoicing and the list of its 
syntaxes  pursuant  to  Directive  2014/55/EU  of  the  European  Parliament  and  of  the 
Council. 

Member States may  allow  for the transmission of the data from  electronic invoices 
using  other  data  formats  which  ensure  interoperability  with  the  European  Standard 
on electronic invoicing.  

2. The common electronic message for providing the data referred to in paragraph 1 
shall be determined in accordance with the procedure provided for in Article 58(2) of 
Regulation (EU) No 904/2010.’; 

(11) 

Article 264 is replaced by the following: 

‘Article 264 

The  data  transmitted  in  accordance  with  Article 263  shall  contain  all  of  the 
following: 

(a) 

(b) 

the  information  referred  to  in  Article 226,  points  (1)  to  (4),  (6),  (8)  to  (11a), 
(16), (17) and (18); 

in respect of supplies of goods consisting in transfers to another Member State, 
as  referred  to  in  Article 138(2),  point  (c),  the  total  value  of  the  supply, 
determined in accordance with Article 76. 

(12) 

Article 265 is replaced by the following: 

‘Article 265 

In  the  case  of  intra-Community  acquisitions  of  goods,  as  referred  to  in 
Article 42,  the  taxable  person  identified  for  VAT  purposes  in  the  Member 
State  which  issued  him  with  the  VAT  identification  number  under  which 
that person made such acquisitions shall set out the following information in 
the data to be transmitted: 

(a) 

that  person’s  VAT  identification  number  in  that  Member  State  and 
under  which  the  acquisition  and  subsequent  supply  of  goods  were 
made; 

EN 

51 

  EN 

(b) 

(c) 

the  VAT  identification  number,  in  the  Member  State  in  which 
dispatch  or  transport  of  the  goods  ended,  of  the  person  to  whom  the 
subsequent supply was made by the taxable person; 

the  value,  exclusive  of  VAT,  of  each  supply  made  by  the  taxable 
person  in  the  Member  State  in  which  dispatch  or  transport  of  the 
goods ended.’; 

(13) 

(14) 

Article 266 is deleted; 

Article 267 is replaced by the following: 

‘Article 267 

Member States shall take the measures necessary to  ensure that persons who, in accordance 
with  Article 194  or  204,  are  regarded  as  liable  for  payment  of  VAT,  instead  of  a  taxable 
person who is not established in their territory, comply with the obligation, laid down in this 
Chapter, to submit the data.’; 

(15) 

Article 268 is replaced by the following: 

‘Article 268 

Member  States  shall  require  that  taxable  persons  who,  in  their  territory,  make 
intra-Community acquisitions of goods, or transactions treated as such pursuant to 
Article 21  or  22,  submit  data  on  those  transactions  as  provided  for  in  this 
Chapter.’; 

(16) 

(17) 

Articles 269, 270 and 271 are deleted; 

in Title XI, Chapter 6, the following Section 2 is inserted: 

‘Section 2 
Digital reporting requirements for supplies of goods and services for consideration made 
between taxable persons within the territory of a Member State 

Article 271a 

1.  Member  States  may  require  that  taxable  persons  identified  for  VAT 
purposes  in  their  territory  send  electronically  to  their  tax  authorities  data  on  the 
supplies  of  goods  and  services  made  for  consideration  to  other  taxable  persons 
within their territory. 

2.  Member  States  may  require  that  taxable  persons  identified  for  VAT 
purposes  in  their  territory  send  electronically  to  their  tax  authorities  data  on 
taxable transactions other than those referred to in paragraph 1 of this Article and 
in Article 262. 

Article 271b 

Where  a  Member  State  requires  to  send  the  data  pursuant  to  Article  271a,  the 
taxable person, or a third party on behalf of the taxable person, shall transmit that 
data on a transaction-by-transaction basis by no later than 2 working days after the 
invoice is issued, or after the date the invoice had to be issued where the taxable 
person  does  not  comply  with  the  obligation  to  issue  an  invoice.  Member  States 
shall  allow  for  the  transmission  of  data  from  electronic  invoices  which  comply 

EN 

52 

  EN 

with  the  European  standard  on  electronic  invoicing  and  the  list  of  its  syntaxes 
pursuant to Directive 2014/55/EU. 

Member  States  may  allow  for  the  transmission  of  the  data  from  electronic 
invoices using other data formats. 

Article 271c 

By  31 March  2033  at  the  latest  the  Commission  shall,  based  on  the  information 
provided by Member States, present to the Council a report on the functioning of 
the  domestic  reporting  requirements  set  out  in  this  Section.  In  that  report,  the 
Commission shall assess the need for further harmonisation measures and shall if 
deemed necessary, make an appropriate proposal for such measures.’; 

(18) 

Article 273 is replaced by the following: 

‘Article 273 

Member  States  may  impose  other  obligations  which  they  deem  necessary  to 
ensure  the  correct  collection  of  VAT  and  to  prevent  evasion,  subject  to  the 
requirement of equal treatment as between domestic transactions and transactions 
carried  out  between  Member  States  by  taxable  persons  and  provided  that  such 
obligations  do  not,  in  trade  between  Member  States,  give  rise  to  formalities 
connected with the crossing of borders.  

The  option  under  the  first  paragraph  may  not  be  relied  upon  in  order  to  impose 
additional invoicing obligations over and above those laid down in Chapter 3, nor 
to implement additional reporting obligations -over and above those laid down in 
Title XI, Chapter 6.’; 

Article 5 

Transposition 

1.  Member  States  shall  adopt  and  publish,  by  31 December  2023,  the  laws, 
regulations and administrative provisions necessary to comply with Article 1 of this 
Directive. They shall immediately inform the Commission thereof. 

They shall apply those provisions from 1 January 2024.  

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2.  Member  States  shall  adopt  and  publish,  by  31 December  2024,  the  laws, 
regulations and administrative provisions necessary to comply with Article 2 of this 
Directive.  

They shall apply those provisions from 1 January 2025. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

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3.  Member  States  shall  adopt  and  publish,  by  31 December  2025,  the  laws, 
regulations and administrative provisions necessary to comply with Article 3 of this 
Directive.   

They shall apply those provisions from 1 January 2026.  

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

4.  Member  States  shall  adopt  and  publish,  by  31 December  2027,  the  laws, 
regulations and administrative provisions necessary to comply with Article 4 of this 
Directive.  

They shall apply these provisions from 1 January 2028. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

5.  Member  States  shall  communicate  to  the  Commission  the  text  of  the  main 
provisions of national law which they adopt in the field covered by this Directive. 

Article 6 

Entry into force 

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

Article 7 

Addressees 

This Directive is addressed to the Member States. 

Done at Brussels, 

For the Council 
The President 

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