On Monday 8 July, the European Commission proposed amending implementing regulation 282/2011 on the common system of value added tax (VAT) to allow for the introduction of an electronic exemption certificate confirming that a transaction qualifies for a specific exemption.
Annex II of the Regulation sets out the paper version of the VAT and/or excise duty exemption certificate, which must be signed by hand. With this amendment, the current paper version will be replaced by the new electronic version of the exemption certificate to enable Member States to adapt to the growing demands of the digital age and to reduce the administrative burden on businesses, with a view to the increasing use of advanced electronic signatures.
The simplification brought about by this measure should make it possible to reduce costs in the long term and is therefore proportionate, given its budgetary impact. Most of the costs of implementing and operating the digital solution, estimated at €2.9 million, will be borne by the European Commission and fully financed by the FISCALIS programme within the financial envelope provided for in the current Multiannual Financial Framework. The costs for Member States, mainly related to providing access to the central application, are estimated to be low. This measure also has no impact on the scope of VAT exemptions applied, and therefore has no impact on the EU budget.
In addition, the move to electronic format will enable Member States to comply with the obligations imposed by EU legislation requiring them to put in place the technical means necessary for the electronic processing of electronically signed documents when using an online service offered by or on behalf of a public sector body.
In order to adopt this text, the European Commission must first consult the Member States, in particular with regard to the implementing measures laying down the technical specifications and arrangements concerning the applicable electronic format of the new exemption certificate and the way in which it is to be processed electronically. This new electronic certificate will completely replace the paper version from 1 July 2030. For transactions carried out before this date, and in order to make provision for other ongoing IT projects, Member States may continue to use the paper version.
Read the proposal: https://aeur.eu/f/czu (Original version in French by Anne Damiani)