The backbone of e-invoicing: the EU derogation to the VAT directive

Introduction France, Italy, Poland. What do these countries have in common? First of all, they are all members of the EU. And second, among many other similarities, they all requested and obtained a derogation to articles 218 and 232 of the 2006 EU VAT directive in order to be able to implement mandatory e-invoicing. In this blogpost, we want to discuss how the EU derogation system works and why it is so important.

Is e-invoicing harmonisation in the EU possible?

Introduction Recently the European Parliament called on the Commission “to stand for the expansion of e-invoicing and calls for the introduction of an EU e-invoicing standard [sic] harmonising”.[1] This idea seems to be supported by many EU Member States and also private organisations. But what does this need for harmonisation mean exactly? Isn’t there already the pan-European e-invoicing standard EN 16931? In the following we will try to answer these questions.

The future of EU VAT: questions to the GFV answered

Introduction Recently we discussed the outcome of the Group of the Future of VAT (GFV) meeting regarding Digital Reporting Requirements (DRR), such as real-time reporting. During the GFV meeting it was concluded that an EU DRR is the most feasible option in order to finally tackle the €134 billion VAT gap. However, several questions posed by the European Commission (EC) were unanswered during the meeting. In the following we will try to address these questions and hope that our view can add to the discussion.

The future of EU VAT: analysis of the latest GFV meeting

Introduction With an increasing number of EU Member States considering the implementation of real-time reporting, the European Commission is doing everything they can to harmonise this process as much as possible. Discussions between Member States and the EC are ongoing and a recently published summary of the meeting of the Group of the Future of VAT (GFV) in November provides a clear overview of the options that are now on the table.

EU VAT, quo vadis: the expert's advice to the European Commission

Introduction As the European Commission is preparing its legislative proposal under the heading of “VAT in the Digital Age” for Q3 2022, we believe it might be a good time to share the advice experts provided to the European Commission throughout our VAT Talks series. We are very thankful that so many experts shared their views on VAT with us. This resulted in advice regarding the use of technology, the need to focus on harmonisation and simplification, and the importance of a continuous dialogue with the business community.

Summitto’s take on the European Parliament’s report: how to reduce the VAT gap without increasing compliance costs?

Introduction Recently the European Parliament published an excellent report discussing how to improve the exchange of information and compliance to reduce the VAT gap. In the following we will provide an overview of the main findings and analyse the conclusions made in the report. We’ll start by discussing the size of the current VAT gap and the amount of VAT fraud committed on an annual basis. At least €50 billion in VAT fraud every year The report rightfully states that it’s difficult to estimate the VAT gap “as by definition it involves the estimation of unobserved variables, such as the compliance rate.

Analysis of different EU intra-Community transaction based reporting scenarios

Introduction It’s an exciting period for everyone who follows VAT news. Various countries are implementing a VAT system, others are introducing carbon taxes, while recently the e-commerce legislation in the EU went into force. All extremely interesting topics, but the most exciting of them all is the surge of real-time reporting! Multiple countries all over the world are currently in the process of implementing some variant of this tool to tackle VAT fraud.

How do EU Member States exchange VAT information: VIES, Intrastat, Eurofisc and TNA explained

Introduction “VAT fraud is a timing-issue” as VAT Prof. Dr. Redmar Wolf said in one of our previous blog posts. Therefore, it is essential to rapidly exchange VAT data between Member States. Several obligations, systems and institutions were put into place to realise this rapid exchange of data. The wide variety of tools resulted, as often happens in the VAT world, in many abbreviations. In the following we will try to provide some clarity regarding: the VAT Information Exchange System (VIES), Intrastat, Eurofisc and the Transaction Network Analysis (TNA).

The EC consultation 'Mind the VAT Gap': a brief summary of the proposals

The VAT gap in the European Union (EU) is expected to increase to €164 billion in 2020 due to the Covid-19 pandemic.[1] Confronted with this situation of emergency, the European Commission (EC) has placed the reduction of the VAT gap high on its agenda in order to provide Member States with additional fundings to tackle the economic crisis. The “Mind the VAT gap” initiative of the European Commission aims at promoting projects at the level of tax authorities that have proven to be effective in significantly reducing the VAT gap.

The Future of VAT part 2. Q&A Fiscalis Workshop

Previously we analysed the outcomes of the Fiscalis workshop where real-time reporting was discussed. We showed how summitto’s solution could help solve many issues that were raised during the workshop. However, some questions remained which were posed to the VAT Expert Group (VEG). With this blog post, we hope we can help by providing feedback on these questions. In the following we try to answer questions around (1) design, (2) harmonisation, (3) transmission of the invoices and (4) benefits for business.