Press Release: VAT: Commission proposes a review of the VAT rules on invoicing with a view to reduce burdens on business and to help Member States tackle fraud

The European Commission adopted a proposal to change the VAT Directive 2006/112/EC in respect to the invoicing rules, based on a Communication on the technological developments in the field of electronic invoicing. The aim of the proposal was to increase the use of electronic invoicing, reduce burdens on business, support small and medium sized enterprises (SMEs) and help Member States to tackle fraud. The proposal simplified, modernised and harmonised the VAT invoicing rules. In particular, it eliminated the current barriers to e-invoicing in the VAT Directive by treating paper and electronic invoices equally. The proposal was a key element of the Commission's Action Programme to reduce burdens on business by 25% by 2012, and was part of the Commission's strategy to combat VAT fraud more efficiently.