Periodic listings of VAT sales and purchases to support VAT returns in fight against fraud
Whilst the EU VAT Gap has started to reduce, tax authorities are anxious to speed-up the collections of missing VAT – both via errors and fraud. For over a decade, they have been imposing the requirement to supplement summary VAT returns with invoice transaction control statements. This are listings of sales (sometimes purchases) in electronic format which the tax authorities are able to analyse and compare to VAT returns and reporting by counter parties. VAT Calc’s tax engine, VAT Calculator, is built on all the local laws, so can provide real-time VAT calculations for VAT Transaction Control Statements.
In the mid-term, they are being replaced by live or e-invoice VAT reporting which provides real-time transaction data to enable authorities to immediately sport errors or crime. SAF-T is a harmonised schema also increasingly popular covering a wider range of VAT transactions.
VAT transaction control statements
|Czech||Domestic monthly transactions listing|
|Estonia||Monthly sale and purchase listing|
|Hungary||Monthly sales and purchase listing|
|Italy||Esterometro Cross-border (being replaced by SdI|
|Latvia||Monthly sales and purchase listing|
|Romania||Form 394 monthly sale and purchase listing|
|Romania||Form 394 monthly statements|
|Turkey||Monthly sales and purchase listing|
|Slovakia||Sales and purchase invoice listings|
EU proposals to harmonise digital reporting requirements – VAT in the Digital Age
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 EU Tax Action Plan proposals for a fairer and more efficient EU tax regime.
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 all B2C and certain B2B||Following the 1 July 2021 introduction of the One Stop-Shop (OSS), can this be extended to cover further cross-border B2C and all / any B2B transactions (e.g. movement of own stock across borders) to reduce the foreign, non-resident VAT registrations and returns burden|
|More details on Single VAT Registration in the EU|
|2. Digital Reporting Requirements; e-invoicing||What options are there to harmonise the digitisation of transaction reporting amongst the member states. The EU is looking at: Continuous Transaction Control (CTC) e-invoicing, live reporting; or Periodic Transaction Controls (PTC) invoice listings. Also if at a country, EU or hybrid-level.|
|Read more about EU Digital Reporting Requirements (DRR)|
|3. VAT treatment of the platform economy||How can EU member states adapt their tax systems to reflect the new role taken on by Electronic Interfaces - platforms and marketplaces which have enabled millions of private individuals to provide services and goods for the first time. How should the VAT Directive be modified to capture the new dynamics created in the gig and sharing economies, including imposing full deemed supplier VAT obligations on platforms as with 2021 e-commerce package for goods.|
|EU VAT Treatment of Platform Economy update|