VAT directive amendments introducing new obligations on payment service providers and simplified rules for SMEs have been published in the EU official journal, together with related amendments to the administrative cooperation regulation.
For payment service providers:
the amended VAT directive requires keeping records of cross-border payments related to e-commerce for a period of three years; and
the amended administrative cooperation regulation sets out details of how national tax authorities will share and use this information, to be held in a new ‘central electronic system of payment information’ (CESOP) for a period of five years.
These rules will apply from 1 January 2024.
For SMEs, the amended VAT directive will ensure the domestic registration threshold in individual member states cannot exceed €85,000 and allow businesses established in other member states whose EU-wide annual turnover does not exceed €100,000 to benefit from that threshold and other simplifications when making cross-border supplies.
The amended administrative cooperation regulation also sets out arrangements for sharing information between tax authorities for application of the updated SME rules.
The simplified regime for SMEs will apply from 1 January 2025.
VAT directive amendments introducing new obligations on payment service providers and simplified rules for SMEs have been published in the EU official journal, together with related amendments to the administrative cooperation regulation.
For payment service providers:
the amended VAT directive requires keeping records of cross-border payments related to e-commerce for a period of three years; and
the amended administrative cooperation regulation sets out details of how national tax authorities will share and use this information, to be held in a new ‘central electronic system of payment information’ (CESOP) for a period of five years.
These rules will apply from 1 January 2024.
For SMEs, the amended VAT directive will ensure the domestic registration threshold in individual member states cannot exceed €85,000 and allow businesses established in other member states whose EU-wide annual turnover does not exceed €100,000 to benefit from that threshold and other simplifications when making cross-border supplies.
The amended administrative cooperation regulation also sets out arrangements for sharing information between tax authorities for application of the updated SME rules.
The simplified regime for SMEs will apply from 1 January 2025.
