Real-time digital reporting for VAT purposes based on e-invoicing will be required for businesses that operate cross-border from 2024. The legislation makes e-invoicing mandatory for business-to-business intra-EU supplies including British businesses operating in or exporting to EU markets.
The European Commission said the move to e-invoicing would help reduce VAT fraud by up to €11bn a year. According to recent VAT gap figures member states lost €93bn in VAT revenues in 2020 and it is estimated that one quarter of the missing revenues can be attributed directly to VAT fraud linked to intra-EU trade.
The e-invoicing system will bring real-time transaction-based digital reporting for VAT purposes. According to the European Commission once operational the system will give tax authorities in member states valuable information they need to control cross-border transactions and step up the fight against cross-border VAT fraud while...
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