Electronic VAT exemption certificate
On Tuesday December 10, the ECOFIN Council approved the introduction of the electronic VAT exemption certificate proposed by the European Commission in July 2024.
The new certificate will replace the actual hard-paper certificate that entitles international organisations to make VAT exempted purchases in accordance with the Article 151, paragraph 1, of the Council Directive 2006/112/EC:
- Diplomatic and consular bodies
- European and international organisations recognised as such by the host State
- EU and NATO armed forces (under certain conditions)
- United Kingdom’s armed forces stationed on the Island of Cyprus
Initially planned between 2026 and 2030, this measure will be implemented in 2031 with a transitional period of one year where both certificates can be used in parallel. This report will allow the Commission and the Tax administrations of EU member states to define the IT specifications of the electronic VAT exemption certificate and to anticipate its deployment after the formal adoption by the Council.
This measure is a part of the tax digitalisation within the EU.
Find more information in our related article from October 4 : view the article.
