Priority area: tax law
Value Added Tax (VAT) is a tax on transactions. It is levied on the added value that results from each such transaction. It differs from a sales tax because a sales tax is levied on the total value of the transaction. For this reason, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. VAT is collected from someone other than the actual person who bears the cost of the tax (namely the seller rather than the consumer). VAT rates differ widely across the Member States.
Scope
The following directive falls within the scope of the action programme on reducing administrative burdens:
|
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. |
The target group affected by the legislation under review comprises all businesses purchasing or supplying services or goods that are subject to VAT.
Results for Module 1: mapping of Information Obligations (IOs)
stemming directly from EU legislation
For the priority area of tax law (VAT), 34 IOs (25 mandatory and nine "possibilities") have been mapped.
The table below shows which IOs have been identified in this directive and how they have been prioritised (according to level of cost, complexity', and burden potential).
|
Council Directive on the common system of value added tax 2006/112/EC |
|
|
EU IO |
Prioritisation |
|
VAT bookkeeping in sufficient detail for inspection by tax authorities |
*** |
|
Issuing of an invoice |
*** |
|
Taxable persons providing intra-community supplies |
*** |
|
Storage of invoices for inspection |
*** |
|
Notification of the start of working activity as a taxable person |
*** |
|
Application for a VAT refund |
*** |
|
Submission of a periodical VAT return |
*** |
|
Provision of proofs of exemption on exports |
** |
|
Submission of an IC acquisitions listing |
** |
|
Submission of a summary annual VAT return |
** |
|
Guaranteeing the authenticity of the origin and integrity of the content of e-invoices |
* |
|
Formalities relating to the exportation of goods |
* |
|
Submission of VAT returns for the intra-community acquisition of goods other than means of transport and excise goods |
* |
|
Notifications relating to storage |
* |
|
Storage of data guaranteeing authenticity, integrity and legibility of invoices |
* |
|
Obtaining an import certificate for the purpose of import VAT deductions |
* |
|
Notification of the cessation of working activity as a taxable person |
* |
|
Notification of the change of working activity as a taxable person |
* |
|
Notification of cessation of conditions of exemption for EC acquisitions |
* |
|
Issuing principals with statements as a public auctioneer |
* |
|
Keeping separate accounts for special margins and other transactions |
* |
|
Maintaining records of transactions in investment gold |
* |
|
Obtaining certificates of VAT taxable status in order to qualify for refunds |
* |
|
Delivery of certificates attesting that no transactions have been performed for which a business can be held liable for VAT |
* |
|
Keeping a register of shipments without transfer of ownership |
* |
|
Keeping accounts of intra-EU transfers of movable tangible property |
* |
|
Submission of a VAT return in case of intra-community acquisitions of new means of transport |
* |
|
Obligations related to the intra-community supplies of new means of transport |
* |
|
Submission of a VAT return in case of intra-community acquisitions of excise duty products |
* |
|
E-invoicing of obligations in cases of goods or services supplied from a third country |
* |
|
Obligations for self-billing or third party-billing by non-EU entities |
* |
|
Translation of invoices into the language of the Member State in which the supply takes place |
* |
|
Submission of an additional summary paper document when e-invoicing via EDI |
* |
|
Obligations related to the intra-community acquisitions of new means of transport |
* |
*** Priority high
** Priority medium * Priority low