Does Europe want to abolish VAT declarations?
At the end of 2022, the European Commission proposed the VAT package for the digital age. The aim is to make electronic TTB invoicing and real-time reporting mandatory for all cross-border transactions by 2028. In addition, Member States are free to decide whether to impose the same obligation on domestic transactions.

In concrete terms, this would mean that tax administrations of all Member States can monitor transactions in real time. VAT is thus being shifted up a gear and real-time reporting will eventually replace the obligation to declare VAT periodically.

The European Commission’s proposal can also be commented on until April 20. The ITAA is involved as a member of various international organizations that have expressed their views before and may do so again. Moreover, each professional can answer these suggestions himself. Member States have until 4 April to issue a reasoned opinion.

At the same time, the European Parliament and the European Council started examining the texts proposed by the Commission. In Parliament, the Committee on Economic and Monetary Affairs (ECON) is responsible for the preparatory work, and Belgian MEP Olivier Chastel has been appointed rapporteur for this text. The first exchange of views took place at the European Council on January 10.

It is too early to talk about the exact outcome, but it is time for all companies and their advisors to prepare for this (r)evolution . The European legislative process is in full swing. And while there are still a lot of steps to go, the final approval occurs quite quickly.