To help EU Member States keep pace with the digital age and to reduce the administrative burden on businesses, the European Commission proposes to replace the current paper version of the VAT exemption certificate with an electronic one. The move is a decisive step towards digitalising exemption procedures, with an electronic version of the certificate and corresponding IT infrastructure to process it.
The VAT exemption certificate serves as a supporting document for international organisations and institutions to prove that the goods or services they purchase are exempt from VAT. The existing paper version of the VAT exemption certificate is not ready for the digital age as it is not compatible with the needs of digital administrative procedures, nor does it allow for advanced electronic signature that is common standard in many areas today. Moreover, the current outdated paper version poses challenges to Member States and businesses, including increasing costs, administrative burdens, and a lack of flexibility.
Therefore, the European Commission adopted a legislative package on 8 July 2024 proposing to amend Council Directive 2006/112/EC (the VAT Directive) and Council Implementing Regulation (EU) No 282/2011 (the VAT Implementing Regulation). The proposal includes implementing measures laying down the technical details and specifications concerning the applicable electronic format of the certificate and the way in which it is to be processed electronically. This solution will include an e-form in PDF format and the electronic procedure for the VAT exemption certificate, which will also allow the use of advanced electronic signatures. The initiative also aligns with the area of excise duties, where a legal basis for an electronic solution already exists.
In view of the large number of IT projects currently facing them, Member States will be allowed to continue to use the paper version of the exemption certificate for a transitional period until 30 June 2030.
The Commission invites you to have your say on the proposal regarding electronic version of the VAT exemption certificate until 13 September 2024.
Sources
Details
- Publication date
- 23 July 2024
- Author
- Directorate-General for Taxation and Customs Union