94 eIN V043 Presentation EC Mr. Gary Wilkinson

8/7/2019 94 eIN V043 Presentation EC Mr. Gary Wilkinson

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European Committee for Standardization

Comit Europen de Normalisation

Europisches Komitee fr NormungCEN/ISSS eInvoicing Phase 2 Workshop eINV043

Title : Presentation from Mr. Gary Wilkinson (EC) at the 9th meeting of CEN/ISSS WorkshopeInvoicing Phase 2, on 12 February 2009

Source : CEN/ISSS

Date : 2009-02-19

Status : For information

Note :


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12/02/09 Gary Wilkinson 1

European CommissionTaxation and Customs Union

VAT I nv o i ci ng p r oposal

CEN/ ISSS e-Invoicing phase 2 Workshop


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European Commission /Taxation and Customs Union

Back gr oun d t o VAT i nvo i ci ng p r oposal

Legal requirement - Article 237 of VAT DirectiveThe Commission shall present, , a report and , if appropriate, aproposal amending the conditions applicable to electronic invoicing

Invoicing Directive (2001/115/EC) not fully achieve aimof simplifying, modernising and harmonising invoicingrules

Many options available to Member States

Uptake of e-invoicing still slow


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A im s o f VAT I nv o i ci ng p r oposa l

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


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Areas cove red by VAT I nv o i ci ng p r oposal

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)


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Back g r o u n d w o r k

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


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Pr incip l es o f t he VAT I nv o i ci ng p r oposal

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


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Ch ang es t o t h e i ssu ance o f an in vo ice

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


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Chan ges t o t he con t en t o f an i n vo i ce

Full VAT invoice

Current Article 226 with some changes Customers 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 amountECB rate when tax becomes chargeable


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Elect r on ic in vo ices

Equality of treatment between paper and e-invoices Removal of Article 233 (EDI, e-signatures)

Non-discrimination article 218a

Acceptance by the customer removed


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Chan ges t o t h e st o r age o f i n vo i ces

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


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Mem ber St a te w he re r u l es a re app l i cab le

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 isidentified for VAT

Recipient of invoice Member State where the customer is

identified for VAT


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Ot her chan ges i n t he VAT I nv o i ci ng p roposa l

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 reversecharge

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


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Nex t st eps

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

Documents

94 eIN V043 Presentation EC Mr. Gary Wilkinson