52024PC0279

EUROPEAN COMMISSION

Brussels, 8.7.2024

COM(2024) 279 final

2024/0153(NLE)

Proposal for a

COUNCIL IMPLEMENTING REGULATION

amending Implementing Regulation (EU) No 282/2011 as regards the electronic value added tax exemption certificate

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The purpose of this proposal is to adapt Council Implementing Regulation (EU) No 282/2011 1 (the VAT Implementing Regulation) to pave the way for the introduction of an electronic exemption certificate confirming that a transaction qualifies for a specific exemption under the first subparagraph of Article 151(1) of Council Directive 2006/112/EC (the VAT Directive).

Annex II of the VAT Implementing Regulation provides for a paper-based exemption certificate for VAT and/or excise duty designed to be signed by hand. To allow Member States to keep pace with the increasing demands of the digital age and to reduce the administrative burden on businesses, the current paper version will be replaced by the new electronic exemption certificate, to prepare for the increasing use of advanced electronic signatures. In addition, such electronic conversion will allow Member States to comply with the obligations imposed by EU legislation 2 requiring them to put in place the necessary technical means to enable the electronic processing of electronically signed documents when using an online service provided by or on behalf of a public sector body.

Under the new Article 151(1a) of the VAT Directive, the Commission, in consultation with Member States, will be able to adopt implementing measures laying down the technical details and specifications concerning the applicable electronic format of the new exemption certificate and the way in which it is to be processed electronically. This new electronic certificate will fully replace the paper version from 1 July 2030. For transactions carried out before that date, and to take better account of other IT projects under way, Member States may continue to use the paper version set out in Annex II to the VAT Implementing Regulation. Consequently, the wording of Article 51(1) of the VAT Implementing Regulation is amended to allow for the alternative use of both paper and electronic certificates.

Annex II of the VAT Implementing Regulation is no longer up to date as it refers to Directive 2008/118/EC which has been replaced by Council Directive (EU) 2020/262 (recast) 3 and will be amended accordingly.

Finally, both Article 51 and Annex II of the VAT Implementing Regulation will be deleted from 1 July 2030, the date on which this paper version will be replaced by the new electronic VAT exemption certificate pursuant to Article 151(1a) of the VAT Directive.

•Consistency with existing policy provisions in the policy area

The proposal allows for the electronic conversion of the exemption certificate as the next step following its adaptation in 2022 4 , which reflects the extended scope of the exemptions under Article 151(1) of the VAT Directive, to encompass Union activities under the Common Security and Defence Policy (CSDP) 5 and Union measures in response to the COVID-19 pandemic 6 .

•Consistency with other Union policies

The introduction of the electronic VAT exemption certificate is in line with the initiatives taken as part of the EU's digitalisation policy and will help Member States to equip their tax administrations to comply with the requirements for the use of advanced electronic signatures laid down in EU legislation 7 .

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The proposal is based on Article 397 of the VAT Directive. This article provides that the Council, acting unanimously on a proposal from the Commission, shall adopt the measures necessary to implement the VAT Directive.

•Subsidiarity (for non-exclusive competence)

The introduction of the electronic VAT exemption certificate under Article 151(1a) of the VAT Directive requires the VAT Implementing Regulation to be adapted accordingly. This could not be done by Member States acting alone. The adaptation requires a Commission proposal to amend the VAT Implementing Regulation.

•Proportionality

The proposal complies with the proportionality principle as it does not go beyond what is necessary and is proportionate to the objective pursued. The initiative introduces an electronic exemption certificate confirming that a transaction qualifies for a specific exemption under the first subparagraph of Article 151(1) of the VAT Directive. Given the increased administrative burden and lack of flexibility associated with an exemption procedure based on paper documents, the proposed measures will lead to significant simplification and cost savings in the long term and are therefore proportionate in view of their budgetary impact.

•Choice of the instrument

An Implementing Regulation is proposed in view of amending the VAT Implementing Regulation.

3.RESULTS OF EX-POST EVALUATIONS AND STAKEHOLDER CONSULTATIONS

•Stakeholder consultations

No stakeholder consultation was carried out, due to the highly technical nature of this initiative and its alignment with efforts at EU level to promote digital government interactions.

•Collection and use of expertise

The Commission, in consultation with Member States, has carried out a technical study to identify possible IT solutions for the introduction of an electronic exemption certificate and corresponding procedure.

•Regulatory fitness and simplification

The proposal is not linked to REFIT and has no particular impact on micro‑enterprises or SMEs.

•Fundamental rights

The proposed electronic conversion of the VAT exemption procedure supports the adaptation to the digital age and strengthens the rights of citizens regarding the processing of their personal data, as protected by Article 8 of the EU Charter of Fundamental Rights and Article 16 of the Treaty on the Functioning of the European Union.

4.BUDGETARY IMPLICATIONS

This proposal introduces certain changes necessary for the electronic conversion of the VAT exemption certificate but does not affect the scope of the VAT exemptions to which it refers. It therefore has no impact on the Union budget.

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation, and reporting arrangements

The Commission will monitor implementation of the proposed measures as part of its responsibilities for ensuring the correct application of EU VAT legislation.

•Detailed explanation of the specific provisions of the proposal

Article 1, paragraph 1, of the proposal amends the wording of the first sentence of Article 51(1) of the VAT Implementing Regulation to ensure that the new electronic VAT exemption certificate referred to in Article 151(1a) of the VAT Directive can be used as an alternative.

Article 1, paragraph 2, of the proposal replaces the VAT and/or excise duty exemption certificate provided for in Annex II of the VAT Implementing Regulation by a new version which reflects the fact that Directive 2008/118/EC has been replaced by Council Directive (EU) 2020/262 (recast).

Article 2 of the proposal deletes Article 51 and Annex II of the VAT Implementing Regulation to ensure that from 1 July 2030 only the electronic VAT exemption certificate referred to in Article 151(1a) of the VAT Directive will apply.

2024/0153 (NLE)

Proposal for a

COUNCIL IMPLEMENTING REGULATION

amending Implementing Regulation (EU) No 282/2011 as regards the electronic value added tax exemption certificate

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax 8 , and in particular Article 397 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)Article 151(1a) of Directive 2006/112/EC introduces the new electronic VAT exemption certificate and the electronic procedure required to process it. To give Member States sufficient flexibility to implement the large number of related IT projects under way, they are allowed to continue to use the existing paper certificate, as set out in Annex II to Council Implementing Regulation (EU) No 282/2011 9 , for transactions made until 30 June 2030. Article 51(1) of that Implementing Regulation should be amended to allow for the use of either electronic or paper certificates during a transitional period.

(2)Annex II to Implementing Regulation (EU) No 282/2011 should be replaced to reflect the fact that Council Directive 2008/118/EC 10 has been replaced by Council Directive (EU) 2020/262 11 .

(3)In accordance with Directive 2006/112/EC, from 1 July 2030, only the electronic exemption certificate referred to in Article 151(1a) of that Directive is to be used. Consequently, Article 51 of, and Annex II to, Implementing Regulation (EU) No 282/2011, which provide for the paper version of the exemption certificate, should be deleted from that date.

(4)Implementing Regulation (EU) No 282/2011 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Implementing Regulation (EU) No 282/2011 is amended as follows:

(1)in Article 51, paragraph 1 is replaced by the following:

‘1. Where the recipient of a supply of goods or services is established within the Union but not in the Member State in which the supply takes place, and the electronic exemption certificate pursuant to Article 151(1a) of Directive 2006/112/EC is not used, the VAT and/or excise duty exemption certificate set out in Annex II to this Regulation, shall, subject to the explanatory notes set out in the Annex to that certificate, be used to confirm that the transaction qualifies for the exemption under Article 151(1) of Directive 2006/112/EC.

When making use of that certificate, the Member State in which the recipient of the supply of goods or services is established may decide to use either a common VAT and excise duty exemption certificate or two separate certificates.’;

(2)Annex II is replaced by the text in the Annex to this Regulation.

Article 2

Implementing Regulation (EU) No 282/2011 is amended as follows:

(1)Article 51 is deleted;

(2)Annex II is deleted.

Article 3

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 1 shall apply from 1 July 2026.

Article 2 shall apply from 1 July 2030.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

(1) Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax (recast) ( OJ L 77, 23.3.2011, p. 1 ).

(2) Commission Implementing Decision (EU) 2015/1506 of 8 September 2015 laying down specifications relating to formats of advanced electronic signatures and advanced seals to be recognised by public sector bodies pursuant to Articles 27(5) and 37(5) of Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market ( OJ L 235, 9.9.2015, p. 37 ).

(3) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (recast) ( OJ L 58, 27.2.2020, p. 4 ).

(4) Council Implementing Regulation (EU) 2022/432 of 15 March 2022 amending Implementing Regulation (EU) No 282/2011 as regards the VAT and/or excise duty exemption certificate ( OJ L 88, 16.3.2022, p. 1 5 )

(5) Council Directive (EU) 2019/2235 of 16 December 2019 amending Directive 2006/112/EC on the common system of value added tax and Directive 2008/118/EC concerning the general arrangements for excise duty as regards defence efforts within the Union framework ( OJ L 336, 30.12.2019, p. 1 0 )

(6) Council Directive (EU) 2021/1159 of 13 July 2021 amending Directive 2006/112/EC amending Directive 2006/112/EC as regards temporary exemptions on importations and on certain supplies, in response to the COVID-19 pandemic ( OJ L 250, 15.07.2021, p. 1 )

(7) Commission Implementing Decision (EU) 2015/1506 of 8 September 2015 laying down specifications relating to formats of advanced electronic signatures and advanced seals to be recognised by public sector bodies pursuant to Articles 27(5) and 37(5) of Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market ( OJ L 235, 9.9.2015, p. 37 ).

(8) OJ L 347, 11.12.2006, p. 1, ELI: http://data.europa.eu/eli/reg_impl/2011/282/oj .

(9) Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax (OJ L 77, 23.3.2011, p. 1, ELI: http://data.europa.eu/eli/dir/2006/112/oj ).

(10) Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC (OJ L 9, 14.1.2009, p. 12, ELI: http://data.europa.eu/eli/dir/2008/118/oj ).

(11) Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty (OJ L 58, 27.2.2020, p. 4 , ELI: http://data.europa.eu/eli/dir/2020/262/oj ).

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EUROPEAN COMMISSION

Brussels, 8.7.2024

COM(2024) 279 final

ANNEX

to the Proposal

for a Council Implementing Regulation

amending Implementing Regulation (EU) No 282/2011 as regards the electronic value added tax exemption certificate

ANNEX

‘ANNEX II

VAT and/or excise duty exemption certificate referred to in Article 51

EUROPEAN UNION VAT AND /OR EXCISE DUTY EXEMPTION CERTIFICATE (*)

(Directive 2006/112/EC - Article 151 – and Directive (EU) 2020/262 - Article 11)

Serial No (optional):

1. ELIGIBLE BODY/INDIVIDUAL

Designation/name

Street and number

Postcode, place

(Host) Member State

2. COMPETENT AUTHORITY RESPONSIBLE FOR STAMPING (name, address and telephone number)

3. DECLARATION BY THE ELIGIBLE BODY OR INDIVIDUAL

The eligible body or individual(1) hereby declares

(a) that the goods and/or services set out in box 5 are intended(2)

for the official use of

for the personal use of

foreign diplomatic mission

a member of a foreign diplomatic mission

foreign consular representation

a member of a foreign consular representation

a European body to which the Protocol on the privileges and immunities of the European Union applies

an international organisation

a staff member of an international organisation

the armed forces of a State being a party to the North Atlantic Treaty (NATO force)

the armed forces of a Member State taking part in a Union activity under the common security and defence policy (CSDP)

the armed forces of the United Kingdom stationed in the island of Cyprus

for the use of the European Commission or any agency or body established under Union law, where the Commission or that agency or body executes its tasks in response to the COVID-19 pandemic

(designation of the institution) (see box 4)

(b) that the goods and/or services described at box 5 comply with the conditions and limitations applicable to the exemption in the host Member State mentioned in box 1, and

The eligible body or individual hereby undertakes to pay to the Member State in which the place of supply of the goods or services acquired is located the VAT and/or excise duty which would be due if the goods and/or services did not comply with the conditions of exemption or if the goods and/or services were not used in the manner intended.

Place, date

Name and status of signatory

Signature

4. STAMP OF THE BODY (in case of exemption for personal use)

Place, date

Stamp

Name and status of signatory

Signature

5. DESCRIPTION OF THE GOODS AND/OR SERVICES, FOR WHICH THE EXEMPTION FROM VAT AND/OR EXCISE DUTY IS REQUESTED

A. Information concerning the supplier/authorised warehousekeeper

(1) name and address

(2) Member State

(3) VAT/excise number or tax reference number

B. Information concerning the goods and/or services:

Detailed description of the goods and/or services(3) (or reference to the attached order form)

Quantity or number

Value excluding VAT
and excise duty

Currency

Value per unit

Total value

Total amount

6. CERTIFICATION BY THE COMPETENT AUTHORITIES OF THE HOST MEMBER STATE

The consignment/supply of goods and/or services described in box 5 meets:

totally

up to a quantity of

(number)(4)

the conditions for exemption from VAT and/or excise duty

Place, date

Stamp

Name and status of signatory

Signature

7. PERMISSION TO DISPENSE WITH THE STAMP UNDER BOX 6 (only in case of exemption for official use)

By letter No:

Dated:

Designation of eligible institution:

Is by

Competent authority in host Member State:

Dispensed from the obligation under box 6 to obtain the stamp

Place, date

Stamp

Name and status of signatory

Signature

(*) Delete as appropriate.

(1) Delete as appropriate.

(2) Place a cross in the appropriate box.

(3) Delete space not used. This obligation also applies if order forms are attached.

(4) Goods and/or services not eligible should be deleted in box 5 or on the attached order form.

Explanatory notes

1.For the supplier and/or the authorised warehousekeeper, this certificate serves as a supporting document for the tax exemption of the supplies of goods and services or the consignments of goods to the eligible bodies/individuals referred to in Article 151 of Directive 2006/112/EC and Article 11 of Directive (EU) 2020/262. Accordingly, one certificate shall be drawn up for each supplier/warehousekeeper. Moreover, the supplier/warehousekeeper is required to keep this certificate as part of his records in accordance with the legal provisions applicable in his .

2.(a)The general specification of the paper to be used is as laid down in the Official Journal of the European Communities (C 164 of 1.7.1989, p. 3).

The paper is to be white for all copies and should be 210 millimetres by 297 millimetres with а maximum tolerance of 5 millimetres less or 8 millimetres more with regard to their length.

For an exemption from excise duty the exemption certificate shall be drawn up in duplicate:

–one copy to be kept by the consignor;

–one copy to accompany the movement of the products subject to excise duty.

(b)Any unused space in is to be crossed out so that nothing can be added.

(c)The document must be completed legibly and in a manner that makes entries indelible. No erasures or overwriting are permitted. It shall be completed in a language recognised by the host .

(d)If the description of the goods and/or services (box 5.B of the certificate) refers to a purchase order form drawn up in a language other than a language recognised by the host Member Stale, a translation must be attached by the eligible body/individual.

(e)On the other hand, if the certificate is drawn up in a language other than a language recognised by the of the supplier/warehousekeeper, a translation of the information concerning the goods and services in box 5.B must be attached by the eligible body/individual.

(f)A recognised language means one of the languages officially in use in the or any other official language of the Union which the declares can be used for this purpose.

3.By its declaration in of the certificate, the eligible body/individual provides the information necessary for the evaluation of the request for exemption in the host .

4.By its declaration in of the certificate, the body confirms the details in and 3(a) of the document and certifies that the eligible individual is a staff member of the body.

5.(a)The reference to the purchase order form (box 5.B of the certificate) must contain at least the date and order number. The order form should contain all the elements that figure at of the certificate. If the certificate has to be stamped by the competent authority of the host , the order form shall also be stamped.

(b)The indication of the excise number defined in Article 2, point (12), of Council Regulation (EU) No 389/2012 of 2 May 2012 on administrative cooperation in the field of excise duties and repealing Regulation (EC) No 2073/2004 is optional; the VAT identification number or tax reference number must be indicated.

(c)The currencies should be indicated by means of a three‑letter code in conformity with the ISO code 4217 standard established by the International Standards Organisation*.

6.The abovementioned declaration by the eligible body/individual shall be authenticated at by the stamp of the competent authority of the host . That authority can make its approval dependent on the agreement of another authority in its . It is up to the competent tax authority to obtain such an agreement.

7.To simplify the procedure, the competent authority can dispense with the obligation on the eligible body to ask for the stamp in the case of exemption for official use. The eligible body should mention this dispensation at box 7 of the certificate.

____________________________________________________________________________________

* As an indication, some codes relating to currencies currently used: EUR (euro), BGN (lev), CZK (Czech koruna), DKK (Danish krone), GBP (pound sterling), HUF (forint), LTL (litas), PLN (zloty), RON (Romanian leu), SEK (Swedish krona), USD (United States dollar).’

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