ETAF Calls for Stronger EU E-Invoicing Governance Ahead of EC Strategy
The European Tax Adviser Federation (ETAF) has urged the European Commission (EC) to strengthen regional regulations for e-invoicing, citing the need for enhanced security and streamlined adoption. The proposed framework would integrate e-invoicing into ERP systems, improve transmission through interoperable infrastructures, and expand its role in VAT and ESG reporting.
EC Strategy
ETAF, representing 220,000 tax professionals across seven EU countries, argues that clearer governance is necessary to prevent fraud, ensure compliance, and support businesses in transitioning to digital invoicing. The call comes ahead of the EC’s upcoming e-invoicing strategy, set for release by summer 2025, which aligns with the VAT in the Digital Age mandate for structured intra-community e-invoicing by July 2030.
Key Measures Under Consideration:
- Standardized procedures for certified tax advisors
- Adoption of the EN 16931 semantic model for interoperability
- Use of e-invoicing for automated VAT compliance
- 10-day invoice data submission deadline (up from ViDA’s current 5 days)
- Data requests limited to invoices, payments, and ESG-related details
- Stricter Peppol access point regulations to combat fraud
- Stronger financial data protection and ethical management policies
- Mandatory cross-verification rights for certified tax advisors
As the EU prepares for a digital-first tax environment, ETAF emphasizes the need for a well-regulated, fraud-resistant e-invoicing framework to support businesses and tax professionals alike.
8 EU Member States Face EC Action Over VAT Registration Failures
The European Commission (EC) has initiated infringement proceedings against 8 EU member states for failing to implement the new SME VAT registration scheme by the 31 December 2024 deadline. The delayed transposition of the directive could impact small businesses seeking VAT exemption under the revised rules introduced in January 2025.
Two-Month Deadline for Compliance
Bulgaria, Belgium, Greece, Ireland, Lithuania, Portugal, Romania, and Spain now have two months to respond, complete implementation, and notify the EC of their compliance. If they fail to provide a satisfactory response, the EC may escalate the matter by issuing a reasoned opinion, a formal step before possible legal action.
What’s at Stake?
The SME VAT exemption scheme, effective 1 January 2025, aims to reduce compliance burdens for small businesses by allowing them to sell goods and services without charging VAT. However, businesses opting in cannot deduct VAT on purchases related to their exempt supplies.
Key Features of the New VAT Rules:
- National Thresholds: Member States can set a VAT exemption threshold of up to €85,000 in annual turnover. Some may introduce sector-specific thresholds.
- Cross-Border VAT Exemption: Small businesses with EU-wide turnover under €100,000 can apply for VAT exemption across all member states.
- Simplified Compliance: A single VAT registration in the home country, a quarterly reporting system, and streamlined invoicing processes replace the previous burdensome requirements.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
