VAT invoicing
In recent years we have seen Council conclusions and various legislative proposals from the European Commission aimed at simplifying and improving the current systems relating to value added tax. Quite a number of these developments are still in the...
In recent years we have seen Council conclusions and various legislative proposals from the European Commission aimed at simplifying and improving the current systems relating to value added tax. Quite a number of these developments are still in the pipeline, being discussed, or else generating an understandable high level of interest. Taxation matters!
Invoices, though perhaps appearing to be a minor issue vis-à-vis the wider picture, play an indispensable part in the process - providing proof of claims and payments, while allowing taxation authorities to conduct control operations. They were governed by their own piece of legislation (Directive 2001/115/EC) to ensure harmonisation and universal recognition across the bloc. The directive had introduced a mandatory list of information items for inclusion, as well as the requirement for taxation authorities to accept e-invoices using electronic signatures or electronic data interchange. It paved the way for all options in terms of storage location and method and also provided businesses with the choice, under particular circumstances, to outsource invoicing operations even to customers. These provisions were later integrated in the directive of 2006 on the common system of VAT (better known as the VAT Directive), as part of the ongoing simplification process.
This same directive binds the Commission services to conduct a review of the current provisions on e-invoicing by the end of this year. The plans are that all legislation related to invoices will be reviewed and, if necessary, legislative proposals will also be presented. The latter heightens the need for a quick pace - the Barroso Commission will present its proposals by the end of the year, as the next year may usher in a new College of Commissioners.
To enhance its own studies, a consultation paper has been initiated by DG Taxation and Customs (TAXUD), providing a list of 15 recommendations on which stakeholders may provide their views. Should the obligation to issue an invoice for supplies be removed? Should the issue of invoices have a deadline (with the 15th of the following month being suggested)? There are other points which should be of interest to traders, including those relating to storage and archiving, conversion of paper invoices and self-billing.
Besides, there is also the issue of e-invoicing. Should be based on three criteria ‒ an equal treatment between paper and electronic formats, the guarantee of authenticity and integrity, and an agreement between supplier and customer? E-invoicing is of course an area that needs to be constantly assessed, as its progress is very much in line with other developments that affect the business community.
The consultation paper and further details on participation are available online. The deadline for submission of comments is September 19.
• Mr Micallef is Civil Society Coordinator at MEUSAC.
Invoices, though perhaps appearing to be a minor issue vis-à-vis the wider picture, play an indispensable part in the process - providing proof of claims and payments, while allowing taxation authorities to conduct control operations. They were governed by their own piece of legislation (Directive 2001/115/EC) to ensure harmonisation and universal recognition across the bloc. The directive had introduced a mandatory list of information items for inclusion, as well as the requirement for taxation authorities to accept e-invoices using electronic signatures or electronic data interchange. It paved the way for all options in terms of storage location and method and also provided businesses with the choice, under particular circumstances, to outsource invoicing operations even to customers. These provisions were later integrated in the directive of 2006 on the common system of VAT (better known as the VAT Directive), as part of the ongoing simplification process.
This same directive binds the Commission services to conduct a review of the current provisions on e-invoicing by the end of this year. The plans are that all legislation related to invoices will be reviewed and, if necessary, legislative proposals will also be presented. The latter heightens the need for a quick pace - the Barroso Commission will present its proposals by the end of the year, as the next year may usher in a new College of Commissioners.
To enhance its own studies, a consultation paper has been initiated by DG Taxation and Customs (TAXUD), providing a list of 15 recommendations on which stakeholders may provide their views. Should the obligation to issue an invoice for supplies be removed? Should the issue of invoices have a deadline (with the 15th of the following month being suggested)? There are other points which should be of interest to traders, including those relating to storage and archiving, conversion of paper invoices and self-billing.
Besides, there is also the issue of e-invoicing. Should be based on three criteria ‒ an equal treatment between paper and electronic formats, the guarantee of authenticity and integrity, and an agreement between supplier and customer? E-invoicing is of course an area that needs to be constantly assessed, as its progress is very much in line with other developments that affect the business community.
The consultation paper and further details on participation are available online. The deadline for submission of comments is September 19.
• Mr Micallef is Civil Society Coordinator at MEUSAC.