Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the electronic value added tax exemption certificate
Date: 2024-07-08
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: VAT, digitisation, electronic document, electronic government, goods and services, supply, tax exemption, taxpayer

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   EUROPEAN COMMISSION  Brussels, 8.7.2024  COM(2024) 278 final 2024/0152 (CNS)  Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the electronic value added tax exemption certificate  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
The  purpose  of  this  proposal  is  to  amend  Council  Directive  2006/112/EC1  (the  VAT 
Directive)  in  order  to  introduce  an  electronic  exemption  certificate  confirming  that  a 
transaction qualifies for a specific exemption under the first subparagraph of Article 151(1) of 
that Directive. 

Annex II  of  Council  Implementing  Regulation  (EU)  No 282/20112  (the  VAT  Implementing 
Regulation) provides for a VAT and/or Excise Duty exemption certificate, which is designed 
to be handled as a paper version, to be signed in hand. In order to enable Member States to 
keep  pace  with  the  increasing  demands  of  the  digital  age  and  to  reduce  the  administrative 
burden  on  businesses,  the  current  paper  version  should  be  replaced  by  the  new  electronic 
certificate. In addition, such electronic conversion will allow Member States to comply with 
the  obligations  imposed  by  EU  legislation3  requiring  them  to  put  in  place  the  necessary 
technical means to enable the electronic processing of electronically signed documents when 
using an online service provided by or on behalf of a public sector body. 

This initiative also serves to align with the area of excise duties, where electronic procedures 
are already possible4.  

It  is  to  enable  the  Commission  to  adopt  implementing  measures  laying  down  the  technical 
details and specifications concerning the applicable electronic format of the certificate and the 
way in which it is to be processed electronically.  The respective implementing acts shall be 
adopted in consultation of the Standing Committee on Administrative Cooperation established 
by Article 58 of Council Regulation (EU) No 904/20105, applying the examination procedure 
referred to in Article 5 of Regulation (EU) No 182/20116. 

This proposal is the result of an in-depth analysis of the feasibility and costs of introducing an 
electronic  exemption  certificate,  carried  out  at  the  request  of  Member  States,  which  had 

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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), as amended. 
Council  Implementing  Regulation  (EU)  No 282/2011  of  15 March  2011  laying  down  implementing 
measures  for  Directive  2006/112/EC  on  the  common  system  of  value  added  tax  (recast)  (OJ L 77, 
23.3.2011, p. 1). 
Commission Implementing Decision (EU) 2015/1506 of 8 September 2015 laying down specifications 
relating  to  formats  of  advanced  electronic  signatures  and  advanced  seals  to  be  recognised  by  public 
sector  bodies  pursuant  to  Articles 27(5)  and  37(5)  of  Regulation  (EU)  No 910/2014  of  the  European 
Parliament and of the Council on electronic identification and trust services for electronic transactions 
in the internal market (OJ L 235, 9.9.2015, p. 37). 
Article 12(3)  of  Council  Directive  (EU)  2020/262  of  19 December  2019  laying  down  the  general 
arrangements 
ELI: 
(recast) 
for 
http://data.europa.eu/eli/dir/2020/262/oj) 
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). 
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). 

27.2.2020, 

(OJ L 58, 

excise 

duty 

p. 4, 

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withdrawn this element of an earlier Commission proposal of April 20217 (the so-called "buy 
and donate" proposal) and asked for more insight  into the implementation aspects  when the 
corresponding amendments to the VAT Directive were adopted in July 20218. 

Following  the  broad  support  for  an  electronic  transformation  of  the  exemption  certificate 
expressed  at  the  36th meeting  of  the  Group  on  the  Future  of  VAT  in  December  2021,  the 
SCAC9 Expert Group, in May 2022, mandated the SCIT10 to study the feasibility and costs of 
such  a  project  as  well  as  its  implementation  aspects.  During  its  27th meeting  in  February 
202311, the SCAC Expert Group discussed the outcome of this technical study12. 

During  the  43rd meeting  of  the  Group  on  the  Future  of  VAT  held  in  November  2023, 
consensus  was  reached  on  the  principle  of  having  a  digital  solution  for  the  exemption 
certificate  with  preference  for  an  option  involving  a  PDF  e-form  accompanied  by  a  fully 
electronic process. This technical solution has the advantage of building on standards already 
developed,  as  it  is  based  on  DG  TAXUD  technical  stack  and  open  source  technologies, 
making  it  suitable  for  deployment  in  DG  TAXUD  data  centres.  Technical  discussions  with 
Member  States  will  continue  in  SCAC  and  SCIT,  including  further  analysis  of  technical 
details, which will also allow Member States to obtain the necessary elements for calculating 
their costs. 

In  view  of  the  large  number  of  IT  projects  currently  facing  them,  Member  States  will  be 
allowed  to  continue  to  use  the  paper  version  of  the  exemption  certificate  for  a  transitional 
period until 30 June 2030. In order to make it as easy as possible for Member States to switch 
to the electronic procedure, this option should be flexible and available on a transaction-by-
transaction basis. 

In the interests of legal certainty and administrative simplification, and to avoid additional IT 
implementation  costs,  no  distinction  will  be  made  between  domestic  and  cross-border 
transactions  when  applying  the  electronic  exemption  certificate.  The  electronic  exemption 
certificate will also be applied if the exemption is granted by means of a refund of the VAT in 
accordance with Article 151(2) of the VAT Directive. 

In addition, this proposal adds a new provision clarifying that, in cases where the conditions 
for exemption  are not  met  or cease to  apply,  the eligible body or individual  who issued the 
certificate is liable to pay any VAT due. In such cases, the taxable person would be unduly 
disadvantaged  by  a  claim  for  additional  payment  of  VAT,  as  only  the  eligible  body  or 
individual  would  normally  have  knowledge  of  the  relevant  information  on  the  fulfilment  of 
the  conditions  for  the  exemption.  Such  clarification  is  also  necessary  to  avoid  legal 
uncertainty. In order to avoid unnecessary burdens in these exceptional cases, Member States 
may take the necessary measures to allow eligible bodies or individuals to pay the VAT due 
without the need for full VAT registration. 

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Proposal  for  a  Council  Directive  amending  Directive  2006/112/EC  as  regards  exemptions  on 
importations  and  on  certain  supplies,  in  respect  of  Union  measures  in  the  public  interest 
(COM(2021) 181 final). 
Council  Directive  (EU)  2021/1159  of  13 July  2021  amending  Directive  2006/112/EC  amending 
Directive  2006/112/EC  as  regards  temporary  exemptions  on  importations  and  on  certain  supplies,  in 
response to the COVID-19 pandemic (OJ L 250, 15.07.2021, p. 1). 
Standing Committee on Administrative Cooperation 
Sub-committee for IT matters 
See working paper SCAC-EG No 158 and minutes of the meeting, document SCAC-EG No 159. 
See technical study annexed to document SCIT 214 

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The auto-validation clause provided for in Article 51(2) of the VAT Implementing Regulation 
will be maintained  for the  new  electronic procedure. Consequently,  if the goods or services 
are intended for official use, Member States may dispense the eligible body or individual from 
the  requirement  to  have  the  exemption  certificate  signed  electronically  by  the  host  Member 
State  under  the  conditions  they  may  lay  down.  This  dispensation  may  be  withdrawn  in  the 
case of abuse. 

Member  States  will  have  to  apply  the  new  rules  from  1 July  2026,  which  will  give  them 
sufficient time to implement the new electronic VAT exemption certificate and procedure. 

• 

Consistency with existing policy provisions in the policy area 

The proposal allows for the electronic conversion of the exemption certificate as the next step 
following its adaptation in 202213, which reflects the extended scope of the exemptions under 
Article 151(1)  of  the  VAT  Directive,  to  encompass  Union  activities  under  the  Common 
Security  and  Defence  Policy  (CSDP)14  and  Union  measures  in  response  to  the  COVID-19 
pandemic15. 

• 

Consistency with other Union policies 

The  introduction  of  the  electronic  VAT  exemption  certificate  is  in  line  with  the  initiatives 
taken  as  part  of  the  EU's  digitalisation  policy  such  as  the  Berlin  Declaration  on  the  Digital 
Society  and  Value-based  Digital  Government16,  and  will  help  Member  States  to  equip  their 
tax  administrations  to  comply  with  the  requirements  for  the  use  of  advanced  electronic 
signatures laid down in EU legislation17. 

2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of the proposal is Article 113 of the Treaty on the Functioning of the EU. This 
Article provides for the Council, acting unanimously in accordance with a special legislative 
procedure  and  after  consulting  the  European  Parliament  and  the  Economic  and  Social 
Committee, to adopt provisions for the harmonisation of Member States’ rules in the area of 
indirect taxation. 

• 

Subsidiarity (for non-exclusive competence)  

According to the principle of subsidiarity, as set out in Article 5(3) of the Treaty on European 
Union,  action  at  Union  level  may  only  be  taken  if  the  envisaged  aims  cannot  be  achieved 

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Council  Implementing  Regulation  (EU)  2022/432  of  15 March  2022  amending  Implementing 
Regulation (EU)  No 282/2011 as regards the VAT and/or excise duty exemption certificate (OJ L 88, 
16.3.2022, p. 15) 
Council  Directive  (EU)  2019/2235  of  16 December  2019  amending  Directive  2006/112/EC  on  the 
common  system  of  value  added  tax  and  Directive  2008/118/EC  concerning  the  general  arrangements 
for excise duty as regards defence efforts within the Union framework (OJ L 336, 30.12.2019, p. 10) 
Council  Directive  (EU)  2021/1159  of  13 July  2021  amending  Directive  2006/112/EC  amending 
Directive  2006/112/EC  as  regards  temporary  exemptions  on  importations  and  on  certain  supplies,  in 
response to the COVID-19 pandemic (OJ L 250, 15.07.2021, p. 1) 
https://digital-strategy.ec.europa.eu/en/news/berlin-declaration-digital-society-and-value-based-digital-
government  
Commission Implementing Decision (EU) 2015/1506 of 8 September 2015 laying down specifications 
relating  to  formats  of  advanced  electronic  signatures  and  advanced  seals  to  be  recognised  by  public 
sector  bodies  pursuant  to  Articles 27(5)  and  37(5)  of  Regulation  (EU)  No 910/2014  of  the  European 
Parliament and of the Council on electronic identification and trust services for electronic transactions 
in the internal market (OJ L 235, 9.9.2015, p. 37). 

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sufficiently by the Member States alone and can therefore, by reason of the scale or effects of 
the  proposed  actions,  be  better  achieved  by  the  EU.  The  current  VAT  Directive  prevents 
Member States from introducing and applying an electronic VAT exemption certificate. 

• 

Proportionality 

The  proposal  complies  with  the  proportionality  principle  as  it  does  not  go  beyond  what  is 
necessary and is proportionate to the objective pursued. The initiative introduces an electronic 
exemption  certificate  confirming  that  a  transaction  qualifies  for  a  specific  exemption  under 
the  first  subparagraph  of  Article 151(1)  of  the  VAT  Directive.  Given  the  increased 
administrative burden and lack of flexibility associated with an exemption procedure based on 
paper  documents,  the  proposed  measures  will  lead  to  significant  simplification  and  cost 
savings  in  the  long  term  and  are  therefore  proportionate  in  view  of  their  limited  budgetary 
impact. 

• 

Choice of the instrument 

A Directive is required to amend the current VAT Directive. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

No  stakeholder  consultation  was  carried  out,  due  to  the  highly  technical  nature  of  this 
initiative  and  its  alignment  with  efforts  at  EU  level  to  promote  digital  government 
interactions. 

• 

Collection and use of expertise 

The  Commission,  in  consultation  with  Member  States,  has  carried  out  a  technical  study  to 
identify possible IT solutions for the introduction of an electronic exemption certificate  and 
corresponding procedure. 

• 

Impact assessment 

No  separate  impact  assessment  has  been  conducted,  due  to  the  technical  nature  and  very 
narrow scope of this initiative. 

• 

Fundamental rights 

The proposed electronic conversion of the VAT exemption procedure supports the adaptation 
to the digital age and strengthens the rights of citizens with regard to the processing of their 
personal  data,  as  protected  by  Article 8  of  the  EU  Charter  of  Fundamental  Rights  and 
Article 16 of the Treaty on the Functioning of the European Union. 

4. 

BUDGETARY IMPLICATIONS 

The proposal will remove the administrative burden and costs associated with processing the 
paper version of the VAT exemption certificate. Most of the costs for the implementation and 
operation  of  the  digital  solution,  estimated  at  EUR 2.9 million,  will  be  borne  by  the 
Commission, fully financed by FISCALIS programme within its foreseen financial envelope 
in the current Multiannual Financial Framework. The costs for Member States, mainly related 
to providing access to the central application, are estimated to be low. 

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The  new  electronic  certificate  will  not  affect  the  scope  of  VAT  exemptions  applied.  There 
will therefore  be no impact  on the EU budget  as  the own resources based on gross national 
income (GNI) will not be affected.  

5. 

• 

OTHER ELEMENTS 

Explanatory documents (for directives) 

The proposal does not require Explanatory Documents on the transposition. 

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 aims to amend the VAT Directive by enabling the Commission, in consultation with 
Member  States,  to  adopt  implementing  measures  providing  for  an  electronic  certificate 
confirming that the transaction qualifies for a specific exemption under the first subparagraph 
of Article 151(1) of the VAT Directive, to be issued by the eligible body or person to whom 
the  exempt  supply  of  goods  or  services  is  made  and  who,  together  with  the  host  Member 
State, will sign that certificate by electronic means.  

The necessary implementing acts shall contain the technical details and specifications for the 
electronic format and processing of the certificate and shall be adopted in accordance with the 
examination  procedure  referred  to  in  Article 5  of  Regulation  (EU)  No 182/2011,  for  which 
purpose  the  Committee  established  by  Article 58  of  Council  Regulation  (EU)  No 904/2010 
shall be used. 

Due  to  the  large  number  of  ongoing  IT  projects,  Member  States  may  alternatively  use  the 
paper version of the certificate set out in Annex II of the VAT Implementing Regulation for 
transactions carried out until 30 June 2030. 

Recognising  that  businesses  do  not  normally  have  access  to  the  relevant  information,  it  is 
clarified that if the conditions  for exemption  are not  met or cease to  apply,  it is the eligible 
body  or  individual  issuing  the  electronic  certificate  who  is  liable  to  pay  any  VAT  to  the 
Member State where it is due. 

In order to give Member States sufficient time to implement the new electronic procedure, 
they will have to apply the new rules from 1 July 2026. 

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2024/0152 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

amending Directive 2006/112/EC as regards the electronic value added tax exemption 
certificate 

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 Parliament18,  
Having regard to the opinion of the European Economic and Social Committee19,  

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

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Article 51  of  Council  Implementing  Regulation  (EU)  No 282/201120  provides  that 
the  value  added  tax  (VAT)  and/or  excise  duty  exemption  certificate  set  out  in 
Annex II to that Implementing Regulation serves to confirm that a supply of goods or 
services  made  to  an  eligible  body  or  individual  qualifies  for  an  exemption  under 
Article 151  of  Council  Directive  2006/112/EC21.  Implementing  Regulation  (EU) 
No 282/2011  provides  for  an  exemption  certificate  in  paper  form  to  be  signed  by 
hand.  It  is  necessary  to  digitalise  the  process  of  creating  and  submitting  the 
exemption  certificate  and  to  replace  the  paper  document  with  a  document  in 
electronic format in order to minimise bureaucracy and the administrative burden and 
to reduce costs in the long term. 

In  view  of  the  large  number  of  resource-intensive  IT  projects  in  which  Members 
States are involved, in addition to that required to switch to an electronic exemption 
certificate, Member States should be given flexibility and sufficient time to complete 
the transition to the new electronic procedure. To this end, they should be allowed to 
continue to use the paper form set out in Annex II to Implementing Regulation (EU) 
No 282/2011 for transactions carried out during a transitional period. 

It is possible that, after an exemption certificate has been issued, a body or individual 
eligible  for  exemption  for  its  purchases  pursuant  to  Article 151  of  Directive 
2006/112/EC might become aware that the conditions for the exemption in question 

OJ C , , p. . 
OJ C , , p. . 
Council  Implementing  Regulation  (EU)  No 282/2011  of  15 March  2011  laying  down  implementing 
measures  for  Directive  2006/112/EC  on  the  common  system  of  value  added  tax  (OJ L 77,  23.3.2011, 
p. 1, ELI: http://data.europa.eu/eli/reg_impl/2011/282/oj).  
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, ELI: http://data.europa.eu/eli/dir/2006/112/oj).  

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are not or cease to be met. Such information is normally only known to that body or 
individual as the assessment of compliance with those conditions is to be carried out 
on the basis of the activities of the body or individual to whom supplies are made and 
by which those goods or services are to be used. In order to ensure legal certainty for 
taxable  persons  and  to  avoid  undue  burdens  on  taxable  persons,  it  is  necessary  to 
clarify  that  in  such  cases  the  VAT  due  should  be  paid  by  the  eligible  body  or 
individual  who  issued  the  exemption  certificate.  Member  States  should  avoid 
unnecessary  burdens  in  such  exceptional  cases  by  allowing  the  payment  of  VAT 
without the need for a full VAT registration. 

While  maintaining  the  option  currently  available  for  the  paper  version  of  the 
certificate,  it  should  be  possible  for  Member  States  to  continue  to  waive  the 
requirement  for  the  electronic  certificate  to  be  signed  by  the  host  Member  State, 
subject to conditions which they may lay down and which may be withdrawn in the 
event of abuse. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  Article 151(1)  of 
the 
Directive  2006/112/EC, 
Commission. Those powers should be exercised in accordance with Regulation (EU) 
No 182/2011 of the European Parliament and of the Council22. 

implementing  powers  should  be  conferred  on 

(4) 

(5) 

(6) 

Directive 2006/112/EC should therefore be amended accordingly,  

HAS ADOPTED THIS DIRECTIVE: 

In  Article 151  of  Directive  2006/112/EC,  the  following  paragraphs 1a  and  1b  are  inserted:

Article 1 

‘1a.  Member  States  shall  use  an  electronic  certificate  to  confirm  that  a 
transaction  qualifies  for  an  exemption  provided  for  in  paragraph 1,  first 
subparagraph.  The  eligible  body  or  individual  to  whom  the  exempt  supply  of 
goods  or  services  is  made,  shall  issue  the  certificate  and,  together  with  the  host 
Member State, shall sign it by electronic means.  

If the goods or services are intended for official use, Member States may dispense 
the eligible body or individual from the requirement to have the certificate signed 
by  the  host  Member  State  under  the  conditions  they  may  lay  down.  This 
dispensation may be withdrawn in the case of abuse. Member States shall inform 
the  Commission  of  the  contact  point  designated  to  identify  the  services 
responsible for signing the certificate by electronic means and the extent to which 
they  dispense  with  this  requirement.  The  Commission  shall  inform  the  other 
Member States of the information received from Member States. 

By way of derogation from the first two subparagraphs, Member States may opt to 
use  the  paper  version  of  the  certificate  set  out  in  Annex II  to  Council 
Implementing  Regulation  (EU)  No 282/2011*  for  any  transaction  made  until  30 
June 2030. 

22 

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 
(OJ L 55,  28.2.2011,  p. 13,  ELI: 
http://data.europa.eu/eli/reg/2011/182/oj).  

implementing  powers 

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The  Commission  shall,  by  means  of  implementing  acts,  determine  the  technical 
details  and  specifications  as  regards  the  electronic  format  of  the  certificate 
referred to in the first subparagraph  and its processing. Those implementing acts 
shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 5  of  Regulation  (EU)  No 182/2011  and  for  this  purpose  the  committee 
shall be the committee established by Article 58 of Regulation (EU) No 904/2010. 

1b.  Without prejudice to paragraph 3, if the conditions for exemption laid down 
in paragraph 1, first subparagraph, are not met or cease to apply, the eligible body 
or individual who issued and signed the certificate shall be liable to pay the VAT 
to the Member State where it is due. 

______________________ 

* Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying 
down implementing measures for Directive 2006/112/EC on the common system 
of 
ELI: 
(OJ L 77, 
http://data.europa.eu/eli/reg_impl/2011/282/oj).’. 

23.3.2011, 

added 

value 

p. 1, 

tax 

Article 2 

1. 

Member  States  shall  bring  into  force,  by  30 June  2026,  the  laws,  regulations,  and 
administrative provisions necessary to comply with Article 1 of this Directive. They 
shall forthwith communicate to the Commission the text of those provisions. 

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 communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by Article 1 of this Directive. 

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

Article 3 

This Directive is addressed to the Member States. 

Done at Brussels, 

Article 4 

For the Council 
The President 

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