The EU Council agreed on a general approach on a draft directive, aimed at simplifying VAT invoicing require-ments, in particular electronic invoicing. The Council has also adopted directives on applying the VAT reverse charge to greenhouse gas emission allowance trading, and mutual assistance in the recovery of taxes.

VAT Invoicing

The draft VAT directive aims to ensure the acceptance by tax authorities of e-invoices under the same conditions as for paper invoices, and to remove legal obstacles to the transmission and storage of e-invoices. It also comprises measures to help tax authorities ensure that tax is paid. These measures include establishing deadlines for the issuance of invoices, thus enabling a quicker exchange of information on intra-EU supplies of goods and services.

The directive will be adopted by the Council once the Parliament has given its opinion.

VAT Reverse Charge

The Council adopted a directive allowing Member States to implement, on an optional and temporary basis, a reversal of liability for the payment of VAT (value-added tax) on greenhouse gas emission allowance trading.

Recovery of Taxes

The aim of this directive is to clamp down on tax evasion by strengthening mutual assistance between Member States in the recovery of taxes.

For further information see the Council's press release (here), which is available at

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/113398.pdf