The European Union wants to harmonize how companies issue electronic value-added invoices across the bloc as part of a broader push to make VAT easier to pay.
The EU is hoping e-invoicing will help ease complexity and close the gap between expected VAT revenue and what countries actually collected. Lost VAT revenue reached 135 billion euros ($152 billion) in 2019 alone, according to the European Commission.
The Commission in January launched a public consultation to explore its role in reducing the administrative burdens of VAT compliance—including harmonizing e-invoicing rules—for businesses and in helping member countries fight VAT fraud. At least 13 EU countries already have, or plan to implement, e-invoicing systems, but variations in rules across the bloc are creating administrative headaches for companies.
The deadline for comments is April 15 and the Commission plans a legislative proposal in summer or fall.
On the latest episode of Talking Tax, Ellen Cortvriend, director of indirect tax technology at PwC Belgium, talks about what countries are doing on the e-invoicing front, what's ahead for the EU, and what businesses could expect this year. Cortvriend also leads PwC’s global e-invoicing and e-reporting division.
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