EU: New directive to introduce electronic tax certificate for VAT exemptions
The European Council agreed on the new directive to introduce an electronic tax certificate for VAT exemptions.
The European Council on December 10, 2024, agreed on the new directive proposal from the European Commission (EC) to introduce an electronic tax certificate for value added tax (VAT) exemptions.
According to the EU release, the directive will introduce an electronic certificate to replace the existing paper certificate that is used when goods are to be exempt from VAT, for example because they are imported for embassies, international organisations, or armed forces.
Amendments to the initial EC proposal limit the scope for the mandatory use of the electronic certificate to situations when two member states are involved, and the exemption is not granted by way of a refund. Member states will have a transitional period of one year to adapt to the new system.
The agreements will go through technical and linguistic checks before being presented to the Council for formal adoption and will become effective when published in the EU’s Official Journal.