Brussels, 09/01/2013 (Agence Europe) - New VAT invoicing rules (EU Directive 2010/45/EU) came into force on 1 January 2013 across the EU (see EUROPE 10180) to reduce red tape and administrative costs for companies by making electronic invoicing easier and avoiding cashflow problems by making it possible to pay the VAT when companies are themselves paid (rather than the invoice date).
The new directive puts electronic and paper invoices on an equal footing so that companies can choose whichever suits them best and save up to €18 billion in admin costs a year. Member states will no longer be allowed to set preconditions for the use of e-invoices, such as electronic signatures or the obligation to keep a paper copy (electronic copies can be kept instead). Companies with a turnover of less than €2 billion will now be able to pay the VAT to the tax authorities when they actually get paid themselves, rather than on the invoice date, which will help avoid cashflow problems caused by the often long delay between invoice date and receipt of payment. (FG/transl.fl)