European Union: Reached Council general approach on amendment to Council Directive 2006/112/EC as regards VAT rules for the digital age
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Reached Council general approach on amendment to Council Directive 2006/112/EC as regards VAT rules for the digital age
On 5 November 2024, the Council of the European Union reached its general approach on measures related to the EU's value-added tax (VAT) rules in the digital age, specifically the directive amending the Council Directive 2006/112. Amendments to this Directive include new measures for real-time digital VAT reporting via electronic invoices for cross-border business-to-business (B2B) transactions. Member states are required to create a framework to ensure data quality in e-invoices, and national tax administrations will share cross-border transaction data through a new EU-wide IT system designed to analyse potentially fraudulent activities in real-time. This EU-wide system is planned to be operational by 2030 and integrate Member-State systems by 2035. The directive is subject to the special legislative procedure, which requires the European Parliament’s consultation on the amendments made to the European Commission’s submitted proposal.
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