Aurore Lalucq MEP (S&D, French) fully supports the revision of the implementing regulation on the common system of value added tax (VAT), according to her draft report published on Tuesday 1 October. This revision will enable the introduction of an exemption certificate in electronic format confirming that a transaction is eligible for a specific exemption.
The rapporteur has not proposed any amendments to this text. In its explanatory memorandum, the Commission acknowledges the highly technical nature of this initiative, its non-controversial content and the need to enhance digital government interactions.
Ms Lalucq also points out that the proposed dematerialisation of the VAT exemption procedure supports adaptation to the digital age and strengthens the rights of citizens with regard to the processing of their personal data. The proposal will remove the administrative burden and costs associated with processing the paper version of the VAT exemption certificate. The implementation costs will be covered by the Fiscalis programme within its foreseen financial envelope in the current Multiannual Financial Framework. The costs for Member States, mainly related to providing access to the central application, are expected to be low.
She also points out that the new electronic certificate will not affect the scope of the VAT exemptions concerned. There will therefore be no impact on the Union’s budget as the own resources based on gross national income (GNI) will not be affected, she adds. The proposal strengthens anti-abuse measures by stipulating that, if the exemption conditions outlined in paragraph 1 are not met or cease to apply, the exempt body or individual who issued the certificate is liable to pay the VAT to the relevant Member State. In such exceptional cases, Member States are encouraged to allow payment of VAT without requiring full VAT registration.
Read the draft report: https://aeur.eu/f/dp1 (Original version in French by Anne Damiani)