What changed between the plenary report of 31 Oct 2023 and the plenary report of 17 Jan 2025

Removed:Recital 2: (2) The VAT reporting obligations should be adapted to address the challenges of the platform economy, to reduce the need for multiple VAT registrations in the Union and to significantly reduce compliance costs for taxpayers, namely SMEs, in order to ensure a level playing field and the proper functioning of the internal market.

Removed:Recital 3: (3) VAT revenue loss, known as the ‘VAT Gap’, was in 2020 estimated at EUR 93 billion61 in the Union, a significant part of which consists of fraud, in particular missing trader intra-Community fraud62 , estimated in the range of EUR 40-60 billion63 The current VAT gap demonstrates the need to tackle VAT cross-border fraud and carousel fraud through the proper implementation of efficient exchange of information mechanisms and of adequate means for such exchange, including human, financial, technical and technological means. Moreover, the magnitude of the VAT gap value differs significantly from one Member State to another and it is therefore important to enhance cooperation and coordination at the Union level.

Removed:Recital 3 a (new): (3a) The VAT gap feeds the lack of trust between Union tax authorities and represents much more than just missing trader intra-Community (MTIC) fraud. The best way to fight against MTIC, including carousel fraud, would be to remove the VAT exemption for intra-Community supplies of goods and services, since that type of fraud is for the most part due to a break in the fractioned collection of VAT. In order to better circumscribe the fight against VAT fraud, the Commission should undertake further analysis as to how the implementation of this Directive could lay the groundwork for the removal of the VAT exemption for intra-Community supplies of goods and services (i.e. the ‘definitive VAT system’).

Removed:Recital 3 b (new): (3b) The collection of data for international trade statistics (Intrastat) in the context of intra-Community transactions is an essential tool for the tax administrations of the Member States in the fight against VAT fraud and should be maintained.

Removed:Recital 3 c (new): (3c) The VAT exemption for intra-Community supplies of goods and services could increase the possibility of fraud, especially at retail level.

Removed:Recital 4: (4) 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, resulting in a significant burden on businesses and ineffective cross-border controls, 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.

Removed:Recital 4 a (new): (4a) VAT fraud is often linked with organised crime and a very small number of those organised networks can be responsible for cross-border VAT fraud amounting to billions of euro, affecting not only revenue collection in Member States but also having a negative impact on the Union’s own resources. Therefore, Member States have a shared responsibility for the protection of the VAT revenue of all Member States.

Removed:Recital 4 b (new): (4b) The Commission will ensure that digital reporting requirements take into account the experience gained in certain Member States which have already invested in digital invoicing and reporting, so that existing investments in those Member States are not lost and all stakeholders can benefit.

Removed:Recital 4 c (new): (4c) Digital reporting requirements that aim to provide information to tax authorities on a transaction-by-transaction basis should be fair, achievable and balanced, in accordance with the principle of proportionality. The reliability of technological solutions for detecting fraud should result in increased legal certainty for taxpayers.

Removed:Recital 5: (5) 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 could 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 as of 1 January 2028.

Removed:Recital 6: (6) At the end of the transitional period, the definition of an electronic invoice should be aligned with that used in Directive 2014/55/EU of the European Parliament and the Council64, to achieve standardisation in the area of VAT reporting. However, businesses, in particular micro-undertakings and small undertakings as defined in Directive 2013/34/EU64a and non-profit entities, should remain free to adopt other standards in line with Article 217 of Directive 2006/112/EC. / 64a Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

Removed:Recital 6 a (new): (6a) In order to help businesses and tax administrations, the content of the European electronic invoicing standard should be made accessible, simple and clear, in particular by publishing on the Commission's website all relevant information relating to that standard. Given the fact that the European electronic invoicing standard referred to in Directive 2014/55/EU is adapted to a ‘business to government’ (B2G) context, its evolution should be planned to take into account ‘business to business’ (B2B) needs.

Removed:Recital 7: (7) 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 8 working days after the chargeable event has taken place. The limitation periods for the prosecution of VAT fraud should be adjusted accordingly.

Removed:Recital 9: (9) 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, the acceptance by the recipient should no longer be required as of 1 January 2028.

Removed:Recital 10 a (new): (10a) Summary invoices save time and costs and reduce the administrative burden related to invoicing. Moreover, they reduce the possibility of errors and simplify the work for suppliers and customers thanks to simplified record keeping. However, they could also be misused for fraud. Therefore, summary invoices should be maintained only for business to business transactions and should only cover a limited period of time.

Removed:Recital 12: (12) The growing flow of information exchanged daily requires high-performance computer software capable of transmitting the information continuously to national administrations in a secure manner. In order to facilitate for taxable persons the transmission of the invoice data, Member States should put at the disposal of the taxable persons, and in particular of micro-undertakings and small undertakings as defined in Directive 2013/34/EU and non-profit entities, 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.

Removed:Recital 13: (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, including bank details and payment amounts, so that tax administrations can follow not only the goods but also the financial flows and can obtain appropriate information on those flows.

Removed:Recital 14: (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 necessary information to their tax administrations using the European standard laid down in Commission Implementing Decision (EU) 2017/187065 , 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 other methods to report the data that could be easier for certain taxable persons to comply with and that could lead to a reduction of unnecessary burdens.

Removed:Recital 15: (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. The collection of that data should make it possible to have better statistics as to the extent of VAT fraud and should make it possible to reduce that fraud.

Removed:Recital 16 a (new): (16a) Digitalisation makes companies increasingly vulnerable to cybercrime and hacker attacks. The Commission and the Member States should each ensure, as far as possible, the protection of data against cyber-attacks and attacks by hackers or zappers, during their transmission, on a transaction by transaction basis, and during their storage by tax authorities.

Removed:Recital 16 b (new): (16b) The rules governing electronic invoicing and digital reporting requirements do not apply to defence-related purchases exempted under Articles 143 and 151 of Directive 2006/112/EC.

Removed:Recital 16 c (new): (16c) In order to ensure the security of the data transmitted, an exhaustive list of the authorities authorised to examine the data should be drawn up, together with a procedure for processing the data. EPPO, OLAF and Europol should be on that list.

Removed:Recital 17: (17) Several Member States have put in place, in accordance with Article 273 of Directive 2006/112/EC, divergent reporting requirements for transactions within their territories. Those divergent reporting requirements prejudice the functioning of the internal market. In order to avoid the costs derived from the fragmentation of the regulatory framework, the systems implemented in Member States to report supplies of goods and services for consideration between taxable persons within their territory could have 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 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, unless the relevant Member State could provide for other, equally effective, 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.

Removed:Recital 18: (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. At the end of the transitional period, Member States will still be able to introduce other standards, even though they have to accept electronic invoices based on the European Standard.

Removed:Recital 18 a (new): (18a) The collection of individuals’ personal data should not under any circumstances infringe their right to privacy.

Removed:Recital 19: (19) In order to evaluate the effectiveness of the intra-Community digital reporting requirements, the Commission should prepare an assessment report evaluating the impact of intra-Community 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 or any extension to domestic transactions. In addition, the Commission should commission an independent study containing a comprehensive analysis on missing trader fraud, which is a particular category of VAT fraud, and in particular on the effectiveness of the digital reporting requirements in fighting such fraud. The Commission should also command an independent study to conduct a thorough assessment of the advantages and disadvantages of making import one-stop shop (IOSS) mandatory.

Removed:Recital 20: (20) Member States should be able to continue to implement other measures to ensure the correct collection of VAT and to prevent evasion.

Removed:Recital 20 a (new): (20a) In order to reduce the legal risk to which businesses, especially SMEs and micro-undertakings, are exposed due to the complexity of VAT rates within the Union, the databases of the Commission could be expanded into an up-to-date tool that is easily accessible for businesses, providing near real time information on Union VAT rates and responses to tax inquiries.

Removed:Recital 22: (22) There are risks of 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.

Removed:Recital 23: (23) It is therefore necessary to lay down clear, balanced and proportionate rules to address potential distortions of competition in the short-term accommodation rental and passenger transport sectors through the introduction of the deemed supplier model. Under this model, platforms are required to charge and account for the VAT on the underlying supply where no VAT is charged by the supplier, and can be subject to reporting obligations. While the principle of VAT neutrality is key to the VAT system, and should be adhered to as much as possible, the characteristics of the short-term accommodation rental and passenger transport sectors require a dedicated approach through the deemed supplier model.

Removed:Recital 23 a (new): (23a) As the establishment of a deemed supplier model will entail additional costs for small platforms, incentives should be provided to encourage them to comply as soon as possible in order to guarantee a level playing field and conditions for fair competition in those markets.

Removed:Recital 23 b (new): (23b) The deemed supplier scheme should not apply to platforms which are small and medium-sized undertakings as defined in Directive 2013/34/EU, e.g. small suppliers of Short Term Rental (STR) accommodation (hosts or VAT-exempt businesses) that contribute to sustainable tourism in the Union and promote travel to less frequented places. In addition, the deemed supplier scheme should ensure a level playing field and not provide a competitive advantage to large platforms, which are better able to bear additional costs.

Removed:Recital 24: (24) Member States interpret the place of supply of the facilitation service provided by the platforms to non-taxable persons differently. It is necessary to clarify this rule so that the use of a facilitation platform does not in any way create a competitive advantage for a provider. It is also necessary, for the sake of clarity and legal certainty, to establish a uniform definition of the term ‘platform intermediary’.

Removed:Recital 31 a (new): (31a) The implementation of various Union one-stop shop (UOSS) regimes in the Member States requires providing companies with sufficient technical specifications to ensure that the one-stop shop (OSS) declarations do not differ from one country to another and also giving companies the option of downloading a file to submit an OSS declaration.

Removed:Recital 31 b (new): (31b) In order to simplify the day-to-day running of businesses, the Commission might consider consolidating the current three registrations, i.e., import one-stop shop (IOSS), Union one-stop-shop (UOSS) and non-Union one-stop shop (non-UOSS), so that all supplies (namely, imported goods, services and domestic sales) can be declared through a single portal.

Removed:Recital 32: (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 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. However, any extension of the Union OSS …

Removed:Recital 33: (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. For control purposes, such supplies should be reported in the recapitulative statement.

Removed:Recital 35 a (new): (35a) IOSSs should operate transparently and securely. A unified approach between the IOSS, on the one hand, and customs legislation and practice, on the other, would help bring an end to inconsistencies, errors and double taxation.

Removed:Recital 36: (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 Parliament and of the Council71 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 Council72. The Commission’s powers should take into account taxpayers’ rights to confidentiality. Any draft implementing act is to be transmitted to the European Parliament for information, in order to enable the exercise of its rights.

Removed:Recital 38: (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 2025 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 2025, 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 2026, as they will no longer be required after that date.

Removed:Recital 39: (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, including capital goods such as buildings, machinery, tools and equipment, 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 certain supplies of margin scheme goods via that scheme, without the need to register in multiple Member States.

Removed:Recital 39 a (new): (39a) Recognising the importance of sustainable practices, it is important to ensure that the method for calculating VAT on the profit margin for the sale of second-hand and collectible goods is simple and clear. The Union should consider whether other calculation methods (for example, an average VAT margin rate provided by the seller and by category of objects) are needed in order to improve the application and workings of the VAT margin scheme for second-hand goods.

Removed:Recital 39 b (new): (39b) Some Member States do not exempt in-kind donations from VAT, even though such an exemption is possible under the existing VAT Directive, leading businesses to destroy consumer goods, notably returns, rather than donating them to charitable causes. The Commission should issue guidance to Member States, clarifying that VAT exemptions for in-kind donations are compatible with existing Union VAT law.

Removed:Recital 41 a (new): (41a) Implementing digital reporting requirements in the markets of all Member States simultaneously in 2028 will be extremely challenging. A progressive implementation of the digital reporting requirements would ensure the availability of sufficient qualified personnel for the adaptation of all businesses software. Practical solutions to reduce implementation costs should be proposed by the Commission to businesses before the implementation of this Directive.

Removed:Recital 41 b (new): (41b) The package ‘VAT in the Digital Age’ should be phased in as from 1 January 2025.

Removed:Recital 41 c (new): (41c) The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/17251a and delivered an opinion on 3 March 20231b. / 1a Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39). / 1b OJ C 113, 28.3.2023, p. 26.

Removed:Recital 41 d (new): (41d) The expansion of cloud computing services, as a result of digital reporting requirements, could lead to an increase in greenhouse gas emissions. The Commission should take measures and provide incentives to ensure the ‘greening’ of the digital sector, for example by centralising data centres to optimise their functioning, by helping companies to use renewable energies instead of fossil fuels to power their data centres and by using artificial intelligence to reduce their pollution.

Removed:Recital 41 e (new): (41e) This Directive encompasses several changes in the way VAT revenues are to be declared. It might have a significant impact on the nature of the work of tax administrations’ employees. Tax authorities should therefore ensure that their employees have access to the necessary training prior to the entry into force of this Directive.

Removed:Article 1 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2025

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 6, Article 217: For the purposes of this Chapter, ‘electronic invoice’ means an invoice that contains the information required by this Directive, and which has been issued, transmitted and received in any electronic format. / For the purposes of Title XI, Chapter 6, Sections 1 and 2 , ‘electronic invoice’ means an invoice that contains the information required by this Directive, and which has been issued, transmitted and received in a structured electronic format that allows for its automatic and electronic processing.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 1: 1. For the purposes of this Directive, Member State shall accept documents or messages on paper, in a digital format or in electronic form as invoices if they meet the conditions laid down in this Chapter.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 2: 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*. Member States may also allow the issuance of electronic invoices in a different format, in accordance with Article 217 of this Directive, as long as they also allow the use of the European standard. For domestic transactions, Member States may oblige taxable persons established within their territory to issue electronic invoices for supplies of goods and services within their territory.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 2 a (new): 2a. The European standard on electronic invoicing referred to in paragraph 2 of this Article shall be published on the website of the Commission.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 2 b (new): 2b. Micro-undertakings and small undertakings as defined in Directive 2013/34/EU and non-profit entities may use standards recognised and in force in the Member State other than the standard provided for in Directive 2014/55/EU, as long as those standards comply with Article 217 of Directive 2006/112/EC.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 9, Article 232: (9) Article 232 is replaced by the following:

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 9, Article 232: 1. Until 31 December 2027, the use of an electronic invoice shall be subject to acceptance by the recipient for the acquisition of goods carried out in accordance with Article 20 and for supplies of a service that is taxable in a Member State other than the Member State in which the supplier is established. / From 1 January 2028, the use of an electronic invoice shall not be subject to acceptance by the recipient for the acquisition of goods carried out in accordance with Article 20 and for supplies of a service that is taxable in a Member State other than the Member State in which the supplier is established. / 2. For remaining acquisitions and supplies of goods and services that are not referred to in paragraph 1, Member States may provide that the use of electronic invoices issued by taxable persons established within their territory shall not be subject to the acceptance of the recipient established in their territory.

Removed:Article 2 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2026

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point a, Article 14a – paragraph 2: 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. The presumed provider may plead good faith and not be liable in the event that an underlying supplier deliberately fails to declare that he or she is not a taxable person.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 3: 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, the taxable person who facilitates the transfer shall be deemed to have received and supplied those goods. The presumed provider may plead good faith and not be held liable in the event that an underlying supplier deliberately fails to declare that he or she is not a taxable person.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4 a (new): 4a. Member States shall prepare and make available dedicated guidance for those individuals listed in Article 28a of this Directive who opt to register as taxable persons, following the introduction of the deemed supplier regime in the accommodation and passenger transport sectors in the platform economy.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4 b (new): 4b. The Commission shall commission an independent study after 31 December 2027, to assess whether the rules regarding deemed suppliers have been successful and if so to identify new sectors in a similar situation, as well as to assess the advantages and disadvantages of making IOSS mandatory. It shall submit this study to the European Parliament and to the Council.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 3, Article 28a – paragraph 1 – introductory part: 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 by road within the Union, shall be deemed to have received and supplied those services themselves where the person providing those services is one of the following:

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 3, Article 28a – paragraph 1 – point f: deleted

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 3, Article 28a – paragraph 1 a (new): The deemed supplier scheme as provided for in the first paragraph shall not apply to platforms which are small undertakings in the sense of Directive 2013/34/EU1a. / Moreover, the first paragraph shall not apply to passenger transport services or to the supply of short-term accommodation rental facilitated through the use of an electronic interface where a passenger transport service or a short-term accommodation rental provided by a person described in the first paragraph and not facilitated through the use of an electronic interface, would not be subject to VAT. / 1aDirective 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 4, Article 35: (4) Article 35 is replaced by the following:

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 4, Article 35: Article 33 shall not apply to supplies of second-hand goods, as defined in Article 311(1), point (1), nor to supplies of second-hand means of transport, as defined in Article 327(3), subject to VAT in accordance with the relevant special arrangements.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 6, Article 46a: deleted / (deleted) / (deleted)

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 7, Article 135 – paragraph 3: 3. The following shall be regarded as having a similar function to the hotel sector: / (a) the uninterrupted rental of accommodation for a maximum of 31 nights with or without the provision of other ancillary services; / (b) the provision of three or more ancillary significant services during the rental of accommodation.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 10, Article 143 – paragraph 1a – subparagraph 1: 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. It shall inform the European Parliament, EPPO, OLAF and Europol thereof.

Removed:Article 2 – paragraph 1 – point 12, Article 2006/112/EC, Article 194 – paragraph 1: 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 identified for VAT purposes in the Member State in which the VAT is due, the taxable person liable for payment of VAT shall be the person to whom the goods or services are supplied if that person is already identified for VAT purposes in that Member State.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 12, Article 194 – paragraph 1 a (new): 1a. Notwithstanding paragraph 1, non-established businesses shall be able to register and account for local VAT if they choose to do so.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 12, Article 194 – paragraph 2 a (new): 2a. By 31 December 2028, the Commission shall assess the effectiveness of this Article and its added value in combating VAT fraud, namely missing trader fraud, duly informing the Parliament and the Council of the results of that assessment.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 14 – point a, Article 242a – paragraph 1a: 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 by road within the Union, 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.;

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 14 – point b, Article 242a – paragraph 2 – subparagraph 2: Those records shall be kept by the taxable person concerned for a period of seven years from the end of the year during which the transaction was carried out.;

Removed:Clarifying the text

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 27, Article 369xa – paragraph 1 – point 1: (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).

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 27, Article 369xe – paragraph 1 – point b: deleted

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 27, Article 369xh – paragraph 1 – subparagraph 1: The VAT return shall be made out in EUR or, for Member States which have not adopted the euro, in their national currency.

Removed:Article 3 – title: Amendments to Directive 2006/112/EC with effect from 1 January 2027

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 2, Article 138 – paragraph 1a: deleted / (deleted)

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 3, Article 218: For the purposes of this Directive, invoices shall be issued in a structured electronic format. For transactions not subject to the reporting obligations laid down in Title XI Chapter 6, Member States may disallow the issuance of documents on paper or other formats as invoices as of 1 January 2028. 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. Member States may also allow for the issuance of electronic invoices in a different format, in accordance with Article 217.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 4, Article 222 – paragraph 1: 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 8 working days following the chargeable event;

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 4, Article 222 – paragraph 1 a (new): Practical solutions to reduce implementation costs shall be proposed by the Commission to businesses before ... [the date of entry into force of this Directive].

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 4, Article 222 – paragraph 1 b (new): This Article shall not apply to defence-related purchases exempted under Articles 143 and 151.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 5, Article 223: deleted

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 16: (16) in the case of a corrective invoice, the sequential number which identifies the corrected invoice, as referred to in point (2), or the serial number of the corrected invoice, or the number or other similar identifier of the agreement from which the correction results, as referred to in point (2);

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 17: deleted

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – point 18: deleted

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 6, Article 226 – paragraph 1 – 18 a (new): (18a) the core elements of an electronic invoice as set out in Article 6 of Directive 2014/55/EC, with the exception of points (a), (b), (i) and (k), which are not necessary in terms of VAT logic;

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 9 – point a, Article 262 – paragraph 1 – introductory part: Every taxable person identified for VAT purposes shall submit without undue delay to the Member State in which that person is established or identified for VAT 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:;

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 10, Article 263 – paragraph 1 – subparagraph 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 3 working days after the posting date in the taxable person’s accounting books, 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.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 10, Article 263 – paragraph 1 – subparagraph 3: Member States may allow, free of charge for the transmission of the data from electronic invoices using other data formats which ensure interoperability with the European Standard on electronic invoicing.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 10, Article 263 – paragraph 2 a (new): 2a. Paragraphs 1 and 2 do not apply to defence-related purchases exempted under Articles 143 and Article 151.

Removed:Directive 2006/122/EC

Removed:Article 4 – paragraph 1 – point 17, Article 271a – paragraph 1: 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 and data on the supplies of goods and services for consideration made available to them by other taxable persons.

Removed:Article 4 – paragraph 1 – point 17, Article 2006/112/EC, Article 271a – paragraph 2: deleted

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 17, Article 271b – paragraph 1: 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 5 working days after the posting date in the taxable person’s accounting books 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 with the European standard on electronic invoicing referred to in Directive 2014/55/EU that covers semantic and syntactic standards, but not transmission modes.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 17, Article 271b – paragraph 2 a (new): For B2C transactions and transactions with non-Union operators, Member States may allow for the transmission of the data, which are not necessarily to be drawn from electronic invoices using other data formats.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 17, Article 271c – paragraph 1: By 31 March 2034 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.

Removed:Directive 2006/112/EC

Removed:Article 4 – paragraph 1 – point 18, Article 273 – paragraph 1: Member States may impose other obligations which they deem necessary to ensure the correct collection of VAT and to prevent evasion, subject to the principles of proportionality and 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.

Removed:Article 5 – paragraph 1 – subparagraph 1: Member States shall adopt and publish, by 31 December 2024, the laws, regulations and administrative provisions necessary to comply with Article 1 of this Directive. They shall immediately inform the Commission thereof.

Removed:Article 5 – paragraph 1 – subparagraph 2: They shall apply those provisions from 1 January 2025 for companies with more than 250 employees and from 1 January 2026 for all other companies.

Removed:Article 5 – paragraph 2 – subparagraph 1: Member States shall adopt and publish, by 31 December 2025, the laws, regulations and administrative provisions necessary to comply with Article 2 of this Directive.

Removed:Article 5 – paragraph 2 – subparagraph 2: They shall apply those provisions from 1 January 2026.

Removed:Article 5 – paragraph 3 – subparagraph 1: Member States shall adopt and publish, by 31 December 2026, the laws, regulations and administrative provisions necessary to comply with Article 3 of this Directive.

Removed:Article 5 – paragraph 3 – subparagraph 2: They shall apply those provisions from 1 January 2027.

Removed:Article 5 a (new): Article 5a / Review Clause / (1) By 31 December 2024, the Commission shall present a report on the VAT one-stop shop to the European Parliament and to the Council. The report shall in particular: / (a) analyse the effectiveness of the VAT one-stop shop and identify remaining shortcomings; / (b) explore the merits of further extending the VAT one-stop shop towards the remaining areas of business-to-consumer transactions that are not yet covered; / (c) explore the merits of extending the scope of the one-stop shop to also cover business-to-business transactions; / (d) explore areas to further simplify the procedures for small and medium-sized companies and thus to encourage single market integration. / If appropriate, the report shall be accompanied by a legislative proposal.

Removed:With these measures, the Commission hopes to reduce the VAT gap, better combat VAT fraud, ensure the proper functioning of the internal market and put an end to distortions of competition.

Added: a proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age

Removed:In this respect, your rapporteur stresses the need to respect the principle of proportionality between the objective of combating fraud and the difficulties that might arise in applying the proposed rules to the real life of businesses. The fight against fraud must not be to the detriment of the majority of businesses that work in transparency and good faith.

Added: a proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes.