Type: Draft Legislation
Two routes are included in the Digital Reporting Requirements (DRR) recommended by the European Commission to assist close the EU VAT Gap. It is a component of the three-pillar package for VAT in the Digital Age.
These are expected to generate an additional €11 billion in VAT receipts annually (or €111 billion over ten years). Businesses should save an additional €4 billion per year (€41.4 billion over ten years) due to pre-filled VAT returns, the end of recapitulative statements, and overall cost savings through e-invoicing. However, it is anticipated that implementation will be expensive, costing enterprises and the tax authorities respectively €11.3 billion and €2.2 billion.
2028 EU Digital Reporting Requirements (including Intra-community near-live and e-invoicing harmonization) includes 2 steps:
- EC Sales Lists summaries will be replaced with near-live, mandatory B2B intracommunity digital reporting (DRR) for supply and acquisitions.
- Mandatory intra-community E-invoicing; local plans from member states manage domestic transactions
Effective date: 1 January 2028
