EU Commision proposes a common system for VAT on invoicing
The EU Commission’s proposal of introducing a common system of value added tax on invoicing will be discussed by the European Parliament’s Committee of Economic and Monetary Affairs in the next few weeks. The purpose is to increase the use of electronic invoicing and hence reduce the hassle of paper invoices, particularly for SMEs. It also helps Member States tackle fraud by simplifying, harmonising and modernising the VAT invoicing rules. By removing the distinction between paper and electronic invoices in the VAT Directive, the EU Commission would therefore remove the current barriers to e-invoicing. It proposes using more simplified invoicing for smaller values, for business to consumer (B2C) supplies and for certain VAT exempt supplies where fraud risk is limited.
Maltese MEP David Casa has been appointed as the European Parliament’s (EP) rapporteur on the issue. Casa is tasked with writing a report which sets the European Parliament’s position on the EU Commission’s proposal.
