Introduction When discussing the modernisation of the EU VAT system, often reverse charge is mentioned as a solution to tackle VAT fraud and close the VAT gap. In the following we will provide an introduction to the reverse charge mechanism, explain why it is actually not the best tool to fight VAT fraud and discuss how reverse charge can co-exist with real-time reporting systems such as summitto’s solution. What is reverse charge?

Introduction As we have shown in other articles on this blog, real-time reporting has a considerable impact on the economic processes within a jurisdiction. Through digitalisation, some of them might increase their efficiency, as is the case with call-of-stock arrangements. Nevertheless, real-time reporting could create some legal challenges when it comes to a particular way of issuing invoices. Today, we will focus on self-billing and how real-time reporting may have an impact on this type of arrangement.

Introduction Real-time reporting solutions are spreading all over the European Union (EU). With more and more countries planning to introduce this technology, we wish to focus today on how real-time reporting affects call-off stock arrangements, predetermined movements of goods between EU Member States. In order to quantify the advantage of real-time reporting in the context of call-off stock arrangements, we will first focus on the definition of such movements of goods, taking into account the latest developments on a EU level.

Introduction Clearance is a central topic in the debate around real-time reporting. Some countries adopting this technology opted for a clearance model. We explained in a previous blogpost the meaning and functioning of clearance. Today we would like to dig deeper into the concept of clearance, highlighting the difference between centralised and decentralised clearance. In fact, clearance is not always the same. Some countries like Italy opted for a centralised clearance model, where all invoices have to be first approved by a central authority.

Introduction In this episode of VAT talk, we discuss the VAT system in Brazil with Luciana Marques Vieira da Silva Oliveira. Come discover with us how the Brazilian VAT ecosystem works and the benefits produced by the introduction of a real-time reporting system. Luciana advises European countries which still do not have introduced a real-time reporting system to “think of a collective, integrated solution that uses the most modern technology”.

Introduction There is a lot of fuss about clearance in the VAT world nowadays, but the problem seems to be that not everyone is following the same definition. The Italian VAT reporting system (SdI) is considered as a clearance model, but so is the Mexican system, and yet there are many differences. In this blog post we will try to explain what it actually is. What is clearance? Clearance is one of the design options when thinking of the implementation of a real-time reporting model.

Introduction We’re starting the new year with a very exciting episode of VAT Talks as we had the honour to speak with Jānis Taukačs! Jānis is Partner at the Latvian Law Firm Sorainen, part of the EU VAT Club and has its own podcast Tax Stories. As Latvia is planning to introduce e-invoicing in 2025, it’s an excellent time to have a discussion with Jānis about Latvian VAT. Jānis gives valuable insights into the Latvian VAT landscape and provides his view about developments regarding real-time reporting on the EU level.

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.

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.

Image: WiSo Nürnberg, FAU Introduction In this episode of VAT talks, we speak with Roland Ismer, tax law professor at the university of Erlangen-Nuremberg and one of the most prominent VAT specialists in Germany. With Roland, we analyse the latest developments connected to VAT and real-time reporting in Europe and Germany, where the new government coalition led by chancellor Olaf Scholz is planning to introduce a VAT reporting system. Come discover with us his view on data protection and the concept of balance between the interests of a functioning tax administration and those of the taxpayers.