Web invoice definition pdf#
Web invoice definition registration#

Web invoice definition registration#

The EU Commission consequently proposes introducing a single VAT registration across the EU, building on the already existing OSS model for e-commerce traders. A similar system can be implemented for the reporting of domestic transactions (however, this will be optional). To achieve this, e-invoices will be mandatory for all B2B intra-community transactions. The objective is to introduce mandatory real-time digital reporting for intra-community transactions by 2028.

Web invoice definition pdf#

This can be achieved by having a default system of DRR based on e-invoices issued, with a standardized format, harmonized across the EU.Īn e-invoice is defined in the proposal as 'an invoice that contains the required information and which has been issued, transmitted, and received in a structured electronic format that allows for its automatic and electronic processing.' Hence, mere PDF invoices sent by email will be excluded from this definition. With an increasing number of member states implementing different models of digital reporting, there is a need for harmonization at EU level. In this context, jurisdictions that have already introduced various types of DRR have seen an increase in VAT collection, due notably to the improvement of tax control and a decrease in VAT reporting errors.

The introduction of DRR based on mandatory e-invoices should be able to reduce this VAT gap. At EU level, the VAT gap in 2020 was an estimated EUR 93 billion (or 9.1% of the total expected VAT revenues across the EU). This VAT gap is due not only to fraud or evasion but also to financial insolvencies and reporting errors. The DRR based on e-invoices primarily aim to reduce the so-called VAT gap (i.e., the difference between expected VAT revenues and the actual amount of VAT collected). We will also outline the current status of e-invoicing and digital reporting in Italy, Belgium and Austria.

We will highlight one of the most important changes in the ViDA proposal below, i.e., the introduction of real-time digital reporting based on e-invoicing. For an overview and the context of this proposal, please refer to our previous client alert on ViDA ( here).