On 13 July 2010, the Council of the European Union adopted a Directive aiming to simplify Value Added Tax (VAT) invoicing requirements, in particular as regards electronic invoicing (10858/10 + 11339/10 ADD 1).

The new Directive sets out to ensure the acceptance by tax authorities of eInvoices under the same conditions as for paper invoices and to remove legal obstacles to the transmission and storage of eInvoices. It also comprises measures to help tax authorities have their taxes paid so as to better tackle VAT fraud. These include establishing deadlines for the issuance of invoices, thus enabling speedier exchange of information on intra-European Union (EU) supplies of goods and services.

Current EU provisions on VAT invoicing have led to a less-than-harmonised set of rules, on account of the many options that remain available to the Member States. The aims of current provisions have therefore not been fully met.

Furthermore, compliance with regulatory requirements has hindered the take-up of technologies that are necessary for the development of eInvoicing.

The European Commission estimates up to €18 billion potential annual cost savings for businesses if obstacles to eInvoicing in VAT rules were to be removed.

Further information:

• Official Press Release - Council of the European Union
• Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the rules on invoicing
• Addendum to Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the rules on invoicing