What changed between the draft committee report of 5 May 2023 and the draft committee report of 13 Dec 2024

Removed:Recital 41 d (new): (41d) 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: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 – paragraph 1 a (new): 1a. For transactions not subject to the digital reporting requirements, an invoice in pdf format with an electronic signature shall be treated as an electronic invoice and shall continue to be accepted as a valid invoice format.

Removed:pdf invoice with electronic signature is a common and well accepted business practice for supplier and customers, in particular for SMEs and VSEs.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 1 a (new): 1a. "Electronic documents" as referred to in paragraph 1 shall also mean electronic documents which are not "electronic invoices" within the meaning of Article 217.

Removed:The definition of an electronic invoice also includes documents created, transmitted and received by electronic means which do not certain contain certain data in a structured electronic format but, for exemple, in the form of graphics.

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 Article paragraph 2 shall be published on the website of the Commission.

Removed:Making it easier for businesses and avoiding errors.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 2 b (new): 2b. SMEs, VSEs and not-for-profit bodies are free to use standards recognised and in force in the Member State other than the one provided for in Directive 2014/55/EU, as long as they comply with Article 217 of Directive 2006/112/EC.

Removed:Directive 2014/55/EU is long and complex (over 150 pages). Risks for SMEs, VSEs and Not-for-Profit bodies of having to use a third party service provider to issue. This adds costs, makes the process complex and harms the competitiveness of the EU businesses.

Removed:Directive 2006/112/EC

Removed:Article 1 – paragraph 1 – point 7, Article 218 – paragraph 2 c (new): 2c. If the recipient of the invoice is not established in a Member State which requires the issuance of electronic invoices in accordance with paragraph 2 and does not have a fixed establishment in such Member State, he may, during the transitional period, which lasts until 1 January 2028 at least, require the issuer of the invoices to send him the invoice on paper or in any other form.

Removed:Prior to the implementation of the EU DRR (01.1.2028), it should be standardized, for the transitional period, that Member State can only impose the obligation to e-issue, transmit and receive e-invoices on taxable person who are either established in the territory of that Member State or have fixed establishment there.

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 – paragraph 1: Until the implementation of the digital reporting requirements of the Union, the use of an electronic invoice shall be subject to acceptance by the recipient, if that recipient is not established in a Member State which requires the issuance of electronic invoices in accordance with Article 218(2) and does not have a fixed establishment in such Member State.

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 does not deliberately declare that he is not a taxable person.

Removed:Good faith applies to all phases of the contract.

Removed:Article 2 – paragraph 1 – point 2 – point b – introductory part: (b) the following paragraphs are added:

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, 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. The presumed provider may plead good faith and not be held liable in the event that an underlying supplier does not deliberately declare that he is not a taxable person.

Removed:Good faith applies to all phases of the contract

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4: 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. The presumed provider may plead good faith and not be liable in the event that an underlying supplier does not deliberately declare that he is not a taxable person.

Removed:Good faith applies all phases of the contract.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 2 – point b, Article 14a – paragraph 4 a (new): 4a. The principle of VAT neutrality shall be respected in all circumstances. To that end, the assessment of the status of a platform user as taxable person, to be carried out on a case-by-case basis, may be based on information transmitted by payment providers in accordance with the obligations arising from Council Directive (EU) 2020/284*. The national provisions transposing that Directive will enter into force on 1 January 2024. / * Council Directive (EU) 2020/284 of 18 February 2020 amending Directive 2006/112/EC as regards introducing certain requirements for payment service providers (OJ L 62, 2.3.2020, p. 7).

Removed:The principle of VAT neutrality could be compromised because the underlying suppliers services would be subject to VAT, but the suppliers would not be able to deduct input on the costs related to these services.

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 ... [two years after the implementation of the measures relating to deemed suppliers] 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.

Removed:Evaluate the effectiveness of the measures adopted with a view making adjustments to the text of the Directive if necessary. The new system has not passed any tax audits in practice. Neither the tax authorities, nor the platforms have any practical experience with this new set of rules and the resulting changes in data collection, storage or accountability.

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 subparagraph does not apply to small online travel agencies (OTAs).

Removed:The introduction of the Deemed Supplier Regime (DSR) will impose disproportionate burdens and compliance costs on small and medium-sized travel agencies providing short-term accommodation. In addition, the principle of non-discrimination is not respected as hotels can claim an input credit while the underlying supplier, if they are not a taxable person, cannot claim on input credit.

Removed:Article 2 – paragraph 1 – point 4: deleted

Removed:Each country has its own tax practice in a number of areas. Similarly, the basis for calculating the margin is not identical within the EU either, since the elements eligible for inclusion in the purchase price may differ from on country to another.In addition the environmental objectives commend to re-use of goods and the circulation of second-hand googs. Creating more tax and administrative burdens will be a brake on cross-border trade of such goods.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 7, Article 135 – paragrah 3: 3. The uninterrupted rental of accommodation for a maximum of 30 days with or without the provision of other ancillary services shall be regarded as having a similar function to the hotel sector.

Removed:A rental duration of 45 days is not usual. Few hotel stays have durations of 45 days or more.

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, Eurofisc, OLAF, Eurojust and Europol thereof.

Removed:Close cooperation and information sharing between EP, EPPO, Eurofisc, Europol , OLAF, Eurojust leads to better coordination in combatting VAT fraud and identifying new fraudulent practices.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 12, Article 194 – paragraph 1 a (new): 1a. The non-established taxable persons whose output services would in principle fall within the scope of paragraph 1 of this Article may voluntarily register for VAT purposes in the Member State of taxation in order to be able to receive supplies in that Member State using the reverse charge mechanism under Article 194.

Removed:The exercise of the reverse charge mechanism option under Article 194 paragraph 1 must take place in the Directive itself or in VAT Regulation (Regulation 282/2011), otherwise there is a risk of a new fragmentation of the European legal framework in VAT taxation, which is particularly worrying in view of the inclusion of these services in the Digital Reporting Requirements.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 12, Article 194 – paragraph 1 b (new): 1b. Non-established businesses shall still be able to register and account for local VAT if they so prefer;

Removed:In order to preserve neutrality, the reserve charge for supplies by non-established taxable persons remains optional for supplying businesses. The amendment clarifies the directive.

Removed:Directive 2006/112/EC

Removed:Article 2 – paragraph 1 – point 14 – point b, Article 242a – paragraph 2 – subparagraph 2: Those records must be kept by the taxable person concerned for a period of 10 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).