2028 near-live reporting of EU Intra-community supplies replaces monthly EC Sales List
The new Digital Reporting Requirements (DRR) , proposed as part of the EU VAT in the Digital Age package, will retires the EC Sales List (ESL) requirement from 1 January 2028. Instead of ECL’s, all taxpayers will have to report within two working days to their national tax office any intracommunity supplies (ICS). The aim of the EU’s European Commission in introducing near real-time reporting is to help prevent missing trader fraud and close the EU VAT Gap.
Aside from changing from monthly to near live reporting, taxpayers will have to report headline details of transactions – not just the summary totals of ESLs which lists sales in total by customer. The EC has not imposed detailed reporting processes on member states, leaving them free to develop how their taxpayers will submit their transactions. This information is then transmitted to a new EC controlled database of all transactions. This will enable cross checking of data across EU borders and quickly identify misalignments and potential VAT fraud.
What’s included in EC Sales Lists?
ESL’s cover the intra-community sale of goods and services between VAT registered businesses. They include:
- The names of EU customers
- Their VAT number
- The customer’s country code
- The value of sales, including credit notes, in the reporting period
Tax Engine and VAT reporting for VAT in the Digital Age
VAT Calc’s tax engine, ‘VAT Calculator’, has been developed with the EU’s VAT in the Digital Age reforms in full focus, including Continuous Transactions Controls agility to live calculate and report transaction data for the 2028 reforms. And since VAT Calculator is built on the same single platform as our VAT Filer product, there is full reconciliation on VAT return reporting.
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 reforms to improve efficiency of VAT for all and reduce fraud | |
| 1. Single VAT registration in the EU; extension of OSS to B2C own stock movements | 2025 (?): Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Marketplaces deemed supplier for EU sellers | |
| EU IOSS mandated for marketplaces | |
| EU tackles misuse of IOSS numbers | |
| Quick fixes to existing e-commerce VAT rules | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
| 2. Digital Reporting Requirements; e-invoicing | 2030 (?): Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| E-invoices mandated intra-community supplies 2028 | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| 2014 EU legal permissions for e-invoicing lifted | |
| 3. VAT treatment of the platform economy | 2026 (?): Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
