The transaction receipts between entities subject to VAT are issued in electronic form and the data are sent to Administration for processing: modernisation of data collection and VAT control issues.
The first subparagraph shall apply at the earliest from January 1st, 2023 and at the latest from January 1st, 2025, according to a schedule and terms fixed by decree depending on, among others, the size and sector of the companies concerned, and after obtaining the authorization provided for in Article 395.1 of the Council Directive 2006/112/EC of November 28, 2006 on the common VAT system.
The Government must submit to Parliament (before September 1st, 2020) a report on the conditions for implementing the obligation of electronic invoicing in inter-company relations, at the earliest from January 1st, 2023 and at the latest from January 1st, 2025. This report
identifies and assesses the most appropriate technical, legal and operational solutions, especially in terms of data transmission to Tax Administration, considering the operational constraints of the respective parties. It assesses, for every option, the expected gains in VAT collection and the expected benefits for the companies.
The Clearance model: this is a tripartite model between the seller, the buyer and the administration. Before issuing any invoice, the supplier of a good or service must wait for approval from the tax administration before billing the buyer. The issue of each invoice is declared and authorized by the tax authorities. Thus, the tax authorities know what amounts of VAT are collected. This model is already followed by many countries in South America, Russia and China.
In the Italian Clearance model, the State intervenes in the exchange of invoices between the supplier and the customer, via an exchange system called “Sistema di interscambio” (SDI). In return the supplier must affix to his/her invoice a code received from the Administration.
Moreover, each country announces specificities of its own. France may consider offering an online VAT pre-declaration service. The Tax Administration would thus have perfect visibility, in relation to the VAT collected by taxable entities, but that would also allow taxable entities to have a pre-filled version of the declaration form (type CA3 or equivalent).
Sébastien MINOTTI – Desktop-Publishing Expert
ARC Global Services, nos consultants évoluent dans un environnement formateur et stimulant. Rencontre avec Margaux, gestionnaire d’incidents pour une banque affiliée à un constructeur automobile. « Bonjour Margaux. D’où viens-tu ? Quelle est ta formation et ton expérience avant ARC Global Services ? Je suis originaire de Normandie, plus précisément de Caen. J’ai une licence […]
Prolongez l’ambiance des fêtes avec quelques moments de la soirée de fin d’année d’ARC Global Services ! Merci à tous pour votre participation !
ARC Global Services propose aux banques l’externalisation de leurs processus métier dans un centre d’expertise situé à Rouen. Retrouvez l’interview de Driss Hazzaf, CEO, par Nicolas Doze sur le plateau de l’émission #JMLeco de BFM Business.