Proposal for a Standard VAT return (SVD) Proposal for a COUNCIL - - PowerPoint PPT Presentation

Proposal for a Standard VAT return (SVD)

Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC on the common system of value added tax as regards a standard VAT return (COM(2013) 721) VAT DEPARTMENT 23 April 2014

Justification and objectives of the proposal

 150 million VAT returns are submitted yearly in the

EU

 The information requested, reporting format and

reporting period is different in each Member State

 Cross-border business activities are increasing  Objectives of the proposal:

 to reduce obstacles to cross border trade and  to reduce burdens on domestic businesses in order to

support growth and competitiveness.

 The administrative burden reduction potential for this

proposal has been estimated at up to EUR 15 billion per year, most of which for small businesses.

Structure of the SVD

 SVD replaces all national VAT returns;  Proposal provides for the main elements of the SVD but

not a SVD form (to be set in the Implementing Regulation);

 5 obligatory boxes + 21 box, optional for Member

States;

 Transitional period (until 31 December 2019) is

envisaged for information on the total value of supplies and acquisitions of goods within the EU;

 Taxpayers details (name, address, VAT number etc)

shall be established in the Implementing Regulation;

 Implementing rules including rules of correction of the

SVD shall be set in the Implementing Regulation.

Contents of the SVD

 Only 5 obligatory boxes  21 optional standardized boxes  Information for transactions originating in or

intended for a specific region or territory for which special rules apply

 Information covered by a special scheme

• utside the normal VAT arrangements,

Obligation to submit VAT returns

 Every taxable person shall submit a SVD  Member States may release from the

• bligation to submit an SVD certain

taxable persons

 Member States may not impose additional

invoicing and standard VAT return

• bligations

Tax period and submission of the SVD

 Tax period:

 one calendar month;  small businesses up to an established threshold may

choose three calendar months (unless one calendar month is needed to prevent tax evasion or fraud in specific cases);

 Member States may allow longer tax periods (up to

• ne year) in other cases.

 Submission:

 deadline determined by Member States (not less

than one month and not more than two months, after the end of tax period)

Submission format and payment

 Format:

 Member States shall allow, and may require,

to submit SVD by electronic means (including electronic file transfer);

 Payment:

 when submitting the SVD;  in any event at the expiry of the deadline by

which the standard VAT return must be submitted.

Commission Implementing Regulation

 Commission Implementing Regulation shall

set the implementing rules of the SVD in particular:

 the technical details for the transmission of the

SVD;

 a common set of definitions and procedures for

the submission of the SVD;

 common procedures by which corrections can be

made to the SVD;

 common electronic methods offering a sufficient

level of security for the submission of the SVD.

Situation Report

 Proposal is being discussed at the

technical level in the Council

 Certain proposed provisions could be

amended in the course of discussions

 The number of optional boxes could

increase to suit the requirements of member states

Questions