VAT in the Digital Age directive proposal (ViDA)
The European Commission has requested comments regarding the VAT in the Digital Age (ViDA) directive proposal. Technology Industries of Finland (TIF) supports the ViDA package’s goals. Tax reporting and registration should be as easy and administrative cost efficient as possible, as these factors impact how well functioning the EU is as a single market and as a business environment for companies.
- TIF strongly supports the development of VAT reporting by utilizing e-invoicing and the EU e-invoice standard. This makes it easier for companies and quickly aligns the system. E-invoicing enables a more efficient transition towards digital reporting and Real-Time Economy on a wider scale.
- The two-day timeline for filing the e-invoice data is in practice impossible to be met especially concerning purchase invoices. This requirement will lead to a situation where companies would report purchase invoices to tax authorities before internal invoice review process has taken place and many corrective transactions would take place. This timeline should be reconsidered.
- Summary invoicing should be accepted, and the concept clarified.
- The Single VAT Registration package is important and TIF highly supports it. It should be possible to choose the OSS system in some Member States and VAT registration in other Member States, when necessary. If this approach is not accepted, this will dilute the main idea of the reform. The long-term goal should be that the OSS system would be eligible also for e.g. movements of retail inventory across EU countries for storage and onward sale of storage.
