European Commission and Directorate-General for Taxation and Customs Union 8 December 2022, Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards VAT rules for the digital age

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This European Commission proposal (COM(2022) 701 final) amends Council Directive 2006/112/EC under Article 113 TFEU to modernise the EU VAT system for the digital age across three pillars: (1) replacing recapitulative statements with mandatory transaction-by-transaction Digital Reporting Requirements (DRRs) and establishing electronic invoicing as the default invoicing method for intra-Community transactions by 1 January 2028; (2) introducing a 'deemed supplier' regime for platforms facilitating short-term accommodation rental and passenger transport services to address VAT inequality between digital and traditional operators; and (3) expanding the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) schemes and mandating reverse charge application where a non-established supplier makes taxable supplies to a VAT-identified recipient, thereby reducing the need for multiple VAT registrations across Member States. The amendments are to be transposed in phased stages between 1 January 2024 and 1 January 2028, with the Commission required to report on domestic reporting harmonisation by 31 March 2033.AI