Value added tax (VAT): administrative cooperation and combating fraud

2016/0371(CNS)

PURPOSE: modernise VAT rules in the context of cross-border electronic commerce between businesses and consumers (administrative cooperation and the fight against fraud).

LEGISLATIVE ACT: Council Regulation (EU) 2017/2454 amending Regulation (EU) No 904/2010 on administrative cooperation and combating fraud in the field of value added tax

CONTENT: this Regulation provides for increased administrative cooperation between Member States in the field of VAT with a view to accompanying and facilitating the extension, from 1 January 2021, of the scope of the special schemes to distance selling of goods and all services provided for in Council Directive (EU) 2017/2455.

The main amendments to Regulation (EU) 904/2010 are as follows:

  • the identification number under which VAT is paid will be communicated in advance to enable the customs authorities to verify its validity when importing goods;
  • requests for records and administrative inquiries made by Member States to taxable persons will be coordinated by the Member State of identification in order to reduce the administrative burden and compliance costs arising from multiple requests for businesses as well as for tax administrations;
  • the Commission is authorised to extract aggregated statistical and diagnostic information, such as the number of the different types of electronic messages exchanged between Member States, related to the special schemes, with the exception of data concerning individual taxable persons;
  • the Commission will have implementing powers to determine the information that the taxable person must submit and that Member States must transmit for the application of the special schemes.

ENTRY INTO FORCE: 18.1.2018.

APPLICATION: from 1.1.2021.