Casa presents draft report on VAT rule on invoicing

During a meeting of the European Parliament's Economic and Monetary Affairs Committee Nationalist MEP David Casa presented his draft report on the VAT Rules on Invoicing.

Following the adoption by the European Commission last year of a proposal to change the VAT directive in respect to the invoicing rules, Mr Casa was appointed rapporteur to take care of the legislative aspect of the new proposal in the European Parliament.

The aim of the proposal is to increase the use of electronic invoicing, reduce burdens on businesses, support small and medium-sized enterprises (SMEs) and help member states to tackle fraud. The proposal simplifies, modernises and harmonises the VAT invoicing rules and in particular eliminates the current barriers to e-invoicing in the VAT directive by treating paper and electronic invoices equally.

The proposal is a key element of the Commission's action programme to reduce burdens on business by 25 per cent by 2012, and is part of the Commission's strategy to combat VAT fraud more efficiently.

During his presentation, Mr Casa explained how the Commission's proposal will increase the efficiency of the business sector as well as be of benefit to SMEs.

"The introduction of the simplified invoice as well as the possibility for SMEs to use a cash accounting scheme will enable these organisations to function more effectively," Mr Casa said.

The MEP also spoke about the importance of enabling member states to apply for funding in order to update their administrative technology. This is the reason for proposing that member states should have access to the already existing FISCALIS Programme.

He also contended that it was essential for the proposal not to place any further burden on business - this was the reason for the removal of certain clauses from the initial proposal.

Following his presentation Mr Casa said that he was satisfied with the progress that had been made and looked forward to working with MEPs in the coming weeks in order to find a compromise on the more controversial issues of the proposal.