IDSt · Non-governmental organisations, platforms and networks and similar · DE
…1 IDSt Feedback on the Commission's Draft Legislation of 08.12.2022 "VAT in the Digital Age" (ViDA) A. Introduction IDSt welcomes the standardisation approaches of the Commission in the legislative package "VAT in the Digital Age" (hereinafter: ViDA) for the most uniform electronic invoicing possible in the EU. The same is true for the approaches to standardise the highly fractionalised procedures of the Member States regarding their national transactional VAT reporting obligations. We must point out, however, that a considerable lead time is necessary for the tax administrations as well as for the taxpayers to ensure the technical implementation. However, technical development will only begin once the necessary legal and administrative regulations have been issued to implement the changes of the ViDA package.
…once the necessary legal and administrative regulations have been issued to implement the changes of the ViDA package. Experience from the "Quick Fixes" as of December 2018 shows that the implementation period of around 13 months at that time was not sufficient, for example, to implement the necessary reports on recapitulative statements under the simplification provision of Article 17a of the VAT Directive in all Member States. Request IDSt therefore urges that Article 5(4) of the Draft VAT Directive (Document COM(2022) 701 final) be amended so that Member States adopt and publish the laws, regulations and administrative provisions necessary to comply with Article 4 of this Directive already by 31st December 2024. B. Part 1: planned changes as of 1st January 2024 1.
…with Article 4 of this Directive already by 31st December 2024. B. Part 1: planned changes as of 1st January 2024 1. Re Article 217 of the Draft VAT Directive - Amendment of the definition of electronic invoice IDSt welcomes the change in the definition of electronic invoices towards the requirement of a structured electronic format. The definition of the "electronic invoice" as a structured data record is the prerequisite for automated and process-safe data processing, which on the one hand takes place without media discontinuity and on the other hand is based on firmly agreed syntactic and semantic contents. Despite the use of artificial intelligence, the conversion of "image-based" invoice formats into structured formats (e.g., by means of scanners and the use of optical character recognition (OCR) software) always leads to an error rate in invoice transmission that Ref.
…use of optical character recognition (OCR) software) always leads to an error rate in invoice transmission that Ref. Ares(2023)2411055 - 03/04/2023 2 requires manual corrections and is therefore unacceptable within the framework of an automated digital process. However, within the framework of the recognition of permissible invoice formats in Article 218 (1) Draft VAT Directive, it is necessary to expand Article 217 Draft VAT Directive definitionally to the effect that invoices that were created electronically but do not contain structured data, for example invoices containing the data as raster graphics (pixels), are considered as invoices in another form and can be used in principle. Otherwise, due to the amendments to Article 218 (1) Draft VAT Directive, only invoice transmission in a structured electronic format or on paper would be permissible.
(1) Draft VAT Directive, only invoice transmission in a structured electronic format or on paper would be permissible. Request Addition of a sentence 2 to Article 217 of the Draft VAT Directive: Invoices issued, transmitted and received in an electronic format that does not comply with the requirements of sentence 1 shall be deemed to be documents in another electronic format. It should also be clarified that no "transmission" is required if an invoice is created directly using the customer's corresponding invoice creation software. Otherwise, an efficient way of creating electronic invoices in a structured data format, especially for small and medium- sized enterprises (SMEs) when supplying larger companies, would be made impossible.
…especially for small and medium- sized enterprises (SMEs) when supplying larger companies, would be made impossible. Request Addition of a sentence 3 to Article 217 of the Draft VAT Directive: An electronic invoice within the meaning of sentence 1 or in another form within the meaning of sentence 2 shall also be deemed to have been issued, transmitted and received if such invoice is created directly in an IT system of the invoice recipient by the invoice issuer or by a third party on behalf of the invoice issuer. 3
…in an IT system of the invoice recipient by the invoice issuer or by a third party on behalf of the invoice issuer. 3 2. Re Article 218 (1) of the Draft VAT Directive - Amendment of the definition of documents to be recognised as invoices Until 31.12.2023, the definition of an electronic invoice also includes such electronically created, transmitted and received documents that do not contain the data in a structured electronic format but, for example, as raster graphics. In order to ensure that this option for creating and transmitting invoices (e.g., an e-mail with attached pdf file), which is used in particular by small businesses, can continue to be used, it is necessary to clarify the wording in Article 218 (1) of the Draft VAT Directive in its version as of 1 January 2024 that "electronic form" in Article 218 (1) of the VAT Directive-E does not exclusively mean "electronic…
…electronic documents that are not "electronic invoices" within the meaning of Article 217 of the Draft VAT Directive. 3. Re Article 218 (2) of the Draft VAT Directive - Option to issue invoices exclusively by electronic means a) On the admissibility of electronic invoices that comply with the European standard for electronic invoicing, Article 218 (2) sentences 1 and 2 of the Draft VAT Directive IDSt warmly welcomes the fact that, in accordance with Article 218 (2) sentence 1 Draft VAT Directive, Member States shall allow the issuing of electronic invoices that comply with the European standard for electronic invoicing and the list of syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council.
…invoicing and the list of syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council. However, the European Standard and the list of syntaxes are not contained in Directive 2014/55/EU, but rather in the Commission's Implementing Decision (EU) 2017/1870 as of 16 October 2017, adopted on the basis of Articles 3(2) and 11 of Directive 2014/55/EU. Accordingly, the European standard for electronic invoicing EN 16931-1:2017, "Electronic invoicing - Part 1: Semantic data model of the core elements of an electronic invoice" is authoritative. The list of permitted syntaxes is derived from the Technical Specification "CEN/TS 16931-2-2017, Electronic invoicing - Part 2: List of syntaxes complying with EN 16931-1" (hereinafter referred to collectively as "EN 16931").
…invoicing - Part 2: List of syntaxes complying with EN 16931-1" (hereinafter referred to collectively as "EN 16931"). In principle, EN 16931 represents a solid framework for the creation of electronic invoices, which must, however, be further specified, concretised, and expanded with regard to the planned application scenario in B2B transactions. 4 In order to be able to ensure automated further processing both in the exchange of invoices between traders and between traders and the tax authorities, it is necessary to precisely define and standardise the information relevant for further processing in the invoice core data set in order to minimise the scope for interpretation of the invoice information contained in the invoice data set.
…set in order to minimise the scope for interpretation of the invoice information contained in the invoice data set. For example, in the core data set (mandatory fields), further standardisation should be carried out regarding the use of the type codes for the invoice types (380, 381, 384 and 386) in connection with the algebraic signs for invoice items and item totals in order to eliminate the scope for interpretation in information processing that currently exists in the status quo of EN 16931. In addition, a number of information relevant to further processing is currently not structured, but can only be mapped via free text fields (e.g., final invoices and their VAT assessment, the referencing of several previous interim invoices and the mapping of cash discounts).
…and their VAT assessment, the referencing of several previous interim invoices and the mapping of cash discounts). These exemplary problem points could be minimised and optimised using additional fields in combination with supplementary business rules. The EN 16931 framework should basically be able to map all information contained in the invoice core data record that is required for further processing in a structured manner. For this purpose, it is necessary, among other things, to add fields to the core data set that could previously only be used optionally. Request Taxpayers should be given a framework in the form of a Multi Stakeholder Forum to drive the necessary adaptations of EN 16931 to VAT requirements together with other stakeholders, such as in the “Connecting Europe Facility”.
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…1 IDSt Feedback on the Commission's Draft Legislation of 08.12.2022 "VAT in the Digital Age" (ViDA) A. Introduction IDSt welcomes the standardisation approaches of the Commission in the legislative package "VAT in the Digital Age" (hereinafter: ViDA) for the most uniform electronic invoicing possible in the EU. The same is true for the approaches to standardise the highly fractionalised procedures of the Member States regarding their national transactional VAT reporting obligations. We must point out, however, that a considerable lead time is necessary for the tax administrations as well as for the taxpayers to ensure the technical implementation. However, technical development will only begin once the necessary legal and administrative regulations have been issued to implement the changes of the ViDA package.
…once the necessary legal and administrative regulations have been issued to implement the changes of the ViDA package. Experience from the "Quick Fixes" as of December 2018 shows that the implementation period of around 13 months at that time was not sufficient, for example, to implement the necessary reports on recapitulative statements under the simplification provision of Article 17a of the VAT Directive in all Member States. Request IDSt therefore urges that Article 5(4) of the Draft VAT Directive (Document COM(2022) 701 final) be amended so that Member States adopt and publish the laws, regulations and administrative provisions necessary to comply with Article 4 of this Directive already by 31st December 2024. B. Part 1: planned changes as of 1st January 2024 1.
…with Article 4 of this Directive already by 31st December 2024. B. Part 1: planned changes as of 1st January 2024 1. Re Article 217 of the Draft VAT Directive - Amendment of the definition of electronic invoice IDSt welcomes the change in the definition of electronic invoices towards the requirement of a structured electronic format. The definition of the "electronic invoice" as a structured data record is the prerequisite for automated and process-safe data processing, which on the one hand takes place without media discontinuity and on the other hand is based on firmly agreed syntactic and semantic contents. Despite the use of artificial intelligence, the conversion of "image-based" invoice formats into structured formats (e.g., by means of scanners and the use of optical character recognition (OCR) software) always leads to an error rate in invoice transmission that Ref.
…use of optical character recognition (OCR) software) always leads to an error rate in invoice transmission that Ref. Ares(2023)2412001 - 03/04/2023 2 requires manual corrections and is therefore unacceptable within the framework of an automated digital process. However, within the framework of the recognition of permissible invoice formats in Article 218 (1) Draft VAT Directive, it is necessary to expand Article 217 Draft VAT Directive definitionally to the effect that invoices that were created electronically but do not contain structured data, for example invoices containing the data as raster graphics (pixels), are considered as invoices in another form and can be used in principle. Otherwise, due to the amendments to Article 218 (1) Draft VAT Directive, only invoice transmission in a structured electronic format or on paper would be permissible.
(1) Draft VAT Directive, only invoice transmission in a structured electronic format or on paper would be permissible. Request Addition of a sentence 2 to Article 217 of the Draft VAT Directive: Invoices issued, transmitted and received in an electronic format that does not comply with the requirements of sentence 1 shall be deemed to be documents in another electronic format. It should also be clarified that no "transmission" is required if an invoice is created directly using the customer's corresponding invoice creation software. Otherwise, an efficient way of creating electronic invoices in a structured data format, especially for small and medium- sized enterprises (SMEs) when supplying larger companies, would be made impossible.
…especially for small and medium- sized enterprises (SMEs) when supplying larger companies, would be made impossible. Request Addition of a sentence 3 to Article 217 of the Draft VAT Directive: An electronic invoice within the meaning of sentence 1 or in another form within the meaning of sentence 2 shall also be deemed to have been issued, transmitted and received if such invoice is created directly in an IT system of the invoice recipient by the invoice issuer or by a third party on behalf of the invoice issuer. 3
…in an IT system of the invoice recipient by the invoice issuer or by a third party on behalf of the invoice issuer. 3 2. Re Article 218 (1) of the Draft VAT Directive - Amendment of the definition of documents to be recognised as invoices Until 31.12.2023, the definition of an electronic invoice also includes such electronically created, transmitted and received documents that do not contain the data in a structured electronic format but, for example, as raster graphics. In order to ensure that this option for creating and transmitting invoices (e.g., an e-mail with attached pdf file), which is used in particular by small businesses, can continue to be used, it is necessary to clarify the wording in Article 218 (1) of the Draft VAT Directive in its version as of 1 January 2024 that "electronic form" in Article 218 (1) of the VAT Directive-E does not exclusively mean "electronic…
…electronic documents that are not "electronic invoices" within the meaning of Article 217 of the Draft VAT Directive. 3. Re Article 218 (2) of the Draft VAT Directive - Option to issue invoices exclusively by electronic means a) On the admissibility of electronic invoices that comply with the European standard for electronic invoicing, Article 218 (2) sentences 1 and 2 of the Draft VAT Directive IDSt warmly welcomes the fact that, in accordance with Article 218 (2) sentence 1 Draft VAT Directive, Member States shall allow the issuing of electronic invoices that comply with the European standard for electronic invoicing and the list of syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council.
…invoicing and the list of syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council. However, the European Standard and the list of syntaxes are not contained in Directive 2014/55/EU, but rather in the Commission's Implementing Decision (EU) 2017/1870 as of 16 October 2017, adopted on the basis of Articles 3(2) and 11 of Directive 2014/55/EU. Accordingly, the European standard for electronic invoicing EN 16931-1:2017, "Electronic invoicing - Part 1: Semantic data model of the core elements of an electronic invoice" is authoritative. The list of permitted syntaxes is derived from the Technical Specification "CEN/TS 16931-2-2017, Electronic invoicing - Part 2: List of syntaxes complying with EN 16931-1" (hereinafter referred to collectively as "EN 16931").
…invoicing - Part 2: List of syntaxes complying with EN 16931-1" (hereinafter referred to collectively as "EN 16931"). In principle, EN 16931 represents a solid framework for the creation of electronic invoices, which must, however, be further specified, concretised, and expanded with regard to the planned application scenario in B2B transactions. 4 In order to be able to ensure automated further processing both in the exchange of invoices between traders and between traders and the tax authorities, it is necessary to precisely define and standardise the information relevant for further processing in the invoice core data set in order to minimise the scope for interpretation of the invoice information contained in the invoice data set.
…set in order to minimise the scope for interpretation of the invoice information contained in the invoice data set. For example, in the core data set (mandatory fields), further standardisation should be carried out regarding the use of the type codes for the invoice types (380, 381, 384 and 386) in connection with the algebraic signs for invoice items and item totals in order to eliminate the scope for interpretation in information processing that currently exists in the status quo of EN 16931. In addition, a number of information relevant to further processing is currently not structured, but can only be mapped via free text fields (e.g., final invoices and their VAT assessment, the referencing of several previous interim invoices and the mapping of cash discounts).
…and their VAT assessment, the referencing of several previous interim invoices and the mapping of cash discounts). These exemplary problem points could be minimised and optimised using additional fields in combination with supplementary business rules. The EN 16931 framework should basically be able to map all information contained in the invoice core data record that is required for further processing in a structured manner. For this purpose, it is necessary, among other things, to add fields to the core data set that could previously only be used optionally. Request Taxpayers should be given a framework in the form of a Multi Stakeholder Forum to drive the necessary adaptations of EN 16931 to VAT requirements together with other stakeholders, such as in the “Connecting Europe Facility”.
88 → 12