Implementing decision 2022/133 - Authorisation of France to derogate from Articles 218 and 232 of the VAT Directive - Main contents

EN

Official Journal of the European Union

L 20/272

By letters registered with the Commission on 12 April 2021 and 20 September 2021, France requested authorisation to introduce a special measure derogating from Articles 218 and 232 of Directive 2006/112/EC (‘the special measure’) to introduce mandatory electronic invoicing to all taxable persons established in the territory of France. This obligation would cover invoices issued in transactions between taxable persons. The authorisation was requested for a period from 1 January 2024 to 31 December 2026.

The Commission transmitted the request made by France to the other Member States by letters dated 29 September 2021. By letter dated 30 September 2021, the Commission notified France that it had all the information necessary for the appraisal of the request..

France submits that the introduction of a generalised electronic invoicing obligation would provide benefits in combatting value added tax (VAT) fraud and evasion. The obligation to issue electronic invoices, coupled with the transmission of additional transaction data, would enable the tax administration to check in real time whether the VAT declared and collected and the invoices issued and received are consistent, improving the capacity of the administration to prevent and counter VAT fraud. It would also increase real-time knowledge of business activity, enabling economic policy to be steered as closely as possible to the economic reality.

France considers that the obligation to issue electronic invoices would facilitate voluntary compliance with tax legislation. It would allow the simplification of taxable persons’ VAT reporting obligations by introducing pre-completion of their returns. Electronic invoicing would provide other advantages to taxable persons, such as the reduction of payment times, reduction of printing costs and postal charges, reduction of costs and delays in processing billing data or the reduction of storage costs. The savings and advantages that taxable persons would obtain from the implementation of electronic invoicing would largely compensate for initial investment that they will have to incur to adapt their systems.

Given the broad scope and the novelty of the special measure, it is important to evaluate the impact of the special measure on combatting VAT fraud and evasion and on taxable persons. Therefore, where France considers that the extension of the special measure is necessary, it should submit to the Commission, together with the request for extension, a report including the assessment of the special measure concerning its effectiveness in fighting VAT fraud and evasion and in simplifying tax collection.

The special measure should not affect the right of taxable persons to receive paper invoices in case of intra-Community acquisitions.

The special measure should be limited in time to allow an assessment of whether it is appropriate and effective in light of its objectives.

The special measure is proportionate to the objectives pursued since it is limited in time and will be implemented gradually. As of 2024, an obligation to receive electronic invoices is to apply to all...