Today, we are taking another step to simplify and digitalise our VAT systems. The certificate in its new form will substantially cut red tape.
Andrzej Domański, Polish Minister for Finance
Paper certificates, used when goods are exempt from VAT, will be replaced by an electronic form. This will simplify and streamline the process for companies and administrations when these goods are imported for embassies, international organisations, or armed forces.
The new measures will come into force on 1 July 2031 with a further transition period of one year during which member states will be able to use both electronic and paper.
The necessary IT specifications will be discussed in expert groups and determined through Commission implementing acts.
Background
On 8 July 2024, the Commission published two proposals aimed at replacing the current paper VAT exemption certificate with an electronic VAT exemption certificate:
- A proposal for a Council Directive amending Directive 2006/112/EC regarding the electronic value-added tax exemption certificate (the Council Directive).
- A proposal for a Council Implementing Regulation amending Implementing Regulation (EU) No 282/2011 regarding the electronic value-added tax exemption certificate (the Council Implementing Regulation).
The VAT Directive creates the legal conditions for the Commission to develop the electronic certificate through implementing measures, while the Implementing Regulation provides for the alternative use of both paper and electronic certificates during the transition phase.
The Council today adopted both of these legislative acts. The European Parliament was consulted on the proposal for a directive and delivered its opinion on 13 November 2024.
- Council directive as regards the electronic value added tax exemption certificate
- Council implementing regulation as regards the electronic value added tax exemption certificate
- Taxation: Council agrees on VAT in the digital age package (press release, 5 November 2024)
- Digital taxation (background information)
- Taxation (background information)