European Committee for Standardization
Comité Européen de Normalisation
Europäisches Komitee für Normung
CEN/ISSS eInvoicing Phase 2 Workshop eINV043
Title : Presentation from Mr. Gary Wilkinson (EC) at the 9th meeting of CEN/ISSS Workshop
eInvoicing Phase 2, on 12 February 2009
Source : CEN/ISSS
Date : 2009-02-19
Status : For information
Note :
Secretariat: Nederlands Normalisatie-instituut (NEN)
Mr. G. Dirkse Telephone: +31 15 2 690 201
Vlinderweg 6 Telefax: +31 15 2 690 242
P.O. box 5059 E-mail:
[email protected]2600 GB Delft
The Netherlands
European Commission
Taxation and Customs Union
VAT Invoicing proposal
CEN/ISSS e-Invoicing phase 2 Workshop
12/02/09 Gary Wilkinson 1
European Commission /
Taxation and Customs Union
Background to VAT invoicing proposal
• Legal requirement - Article 237 of VAT Directive
“The Commission shall present, …, a report and , if appropriate, a
proposal amending the conditions applicable to electronic invoicing…”
• Invoicing Directive (2001/115/EC) not fully achieve aim
of simplifying, modernising and harmonising invoicing
rules
– Many options available to Member States
– Uptake of e-invoicing still slow
12/02/09 Gary Wilkinson 2
European Commission /
Taxation and Customs Union
Aims of VAT Invoicing proposal
• Reduce burdens on business
– Help achieve target of 25% reduction of admin burdens by
2012
• Promote SMEs
– Part of Small Business Act
• Increase uptake of e-invoicing
– Help businesses become more competitive
• Help Member States tackle fraud
– Measure included in anti tax fraud strategy
12/02/09 Gary Wilkinson 3
European Commission /
Taxation and Customs Union
Areas covered by VAT Invoicing proposal
• Issuance of an invoice
• Contents of an invoice
• Electronic invoicing
• Storage of invoices
• Other invoice related matters
– Chargeability to tax for intra-Community supplies
– Right of deduction
– Cash accounting (payment not invoice creates tax point)
12/02/09 Gary Wilkinson 4
European Commission /
Taxation and Customs Union
Background work
Invoicing study
• Available on Commission website
• Includes a mapping tool
Public consultation
• Results available on Commission website
• 64 replies from 10 Member States
• Support recommendations contained in the invoicing study
Technical meeting with Member States
• Held in September 2008
12/02/09 Gary Wilkinson 5
European Commission /
Taxation and Customs Union
Principles of the VAT Invoicing proposal
• Remove, as far as possible, Member States options
– Exempt supplies, outsourcing to 3rd parties outside the EU
• Harmonise the invoicing rules
– Storage periods, time limit of issuing invoices
• Clarify which rules are applicable
– Member State of supplier or Member State of taxation
• Simplify the obligations
– Self-billed invoices, VAT amount in national currency
12/02/09 Gary Wilkinson 6
European Commission /
Taxation and Customs Union
Changes to the issuance of an invoice
Requirement to issue an invoice
• Full VAT invoice
– Exempt supplies (deduction at preceding stage)
– B2B for taxable supplies
• Simplified VAT invoice
– Credit notes
– Small value less than €200
– B2C invoices (option for Member States)
• Distance sellers – required only if applicable to established
businesses
• Payment on account for I-C supplies – not required
12/02/09 Gary Wilkinson 7
European Commission /
Taxation and Customs Union
Changes to the issuance of an invoice
When an invoice needs to be issued
– 15th day of the month following the supply
Summary invoices
– all supplies within the same calendar month
Self-billed invoices
– mention “self-billed” on invoice
– mention customers VAT number
Outsourcing
– 3rd party outside the EU
12/02/09 Gary Wilkinson 8
European Commission /
Taxation and Customs Union
Changes to the content of an invoice
Full VAT invoice
Current Article 226 with some changes
• Customer’s VAT number compulsory
• Date tax becomes chargeable (replace date of supply)
• Codes for exempt (EX) and reverse charge (RC) supplies
Simplified VAT invoice
Current Article 238(2)
• Date of issue
• Identification of supplier
• Nature of goods or services supplied and value
• VAT amount
Currency of VAT amount
ECB rate when tax becomes chargeable
12/02/09 Gary Wilkinson 9
European Commission /
Taxation and Customs Union
Electronic invoices
Equality of treatment between paper and e-invoices
• Removal of Article 233 (EDI, e-signatures)
• Non-discrimination article 218a
• Acceptance by the customer removed
12/02/09 Gary Wilkinson 10
European Commission /
Taxation and Customs Union
Changes to the storage of invoices
Storage period
• Harmonised at 6 years
Place of storage
• No restrictions, no notification
• Must be available without undue delay
Electronic storage
• Paper invoices can be stored in electronic form
Translation of invoices
• Member States must specify which particular invoices
12/02/09 Gary Wilkinson 11
European Commission /
Taxation and Customs Union
Member State where rules are
applicable
Issuance of an invoice
• Member State where the supplier is identified for VAT and
from where supply is made
• Member State of customer if cross border reverse charge
Storage of invoices
• Issuer of invoice – Member State where the supplier is
identified for VAT
• Recipient of invoice – Member State where the customer is
identified for VAT
12/02/09 Gary Wilkinson 12
European Commission /
Taxation and Customs Union
Other changes in the VAT Invoicing
proposal
Chargeability for I-C supplies
• When the supply takes place (no longer 15th day of following month)
• Invoice no longer creates a chargeability to tax
• Same rule for EC acquisitions
Right of deduction
• Must hold a valid invoice for right of deduction, even for reverse
charge
Cash accounting
• Derogation given to UK, Sweden and Slovenia extended to all Member
States
• Optional scheme for supplier with turnover less than €2million
• Account for all supplies and purchases on cash basis
• Recipient can have immediate right of deduction
12/02/09 Gary Wilkinson 13
European Commission /
Taxation and Customs Union
Next steps
Discussion in Council
• Likely to begin in March 2009
• Need unanimity
European Parliament and Economic and Social Committee
• Must give their opinion
Date for implementation 1 January 2013
12/02/09 Gary Wilkinson 14
