Commission Implementing Regulation (EU) 2021/2007 of 16 November 2021 laying down detailed rules for the application of Council Regulation (EU) No 904/2010 as regards the special scheme for small enterprises

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (1), and in particular Articles 17(2), 32(2), 37a(2) and 37b(4) thereof,

Whereas:

(1) Title XII, Chapter 1, of Council Directive 2006/112/EC (2), which provides for a special scheme for small enterprises, has been amended by Council Directive (EU) 2020/285 (3).

(2) Directive (EU) 2020/285 also amended Regulation (EU) No 904/2010 that lays down rules for administrative cooperation and the fight against fraud in the field of value added tax (VAT). Article 17(1), point (g), Article 21(2b), Article 32(1) and Articles 37a and 37b of that Regulation specifically concern the storage, the automated enquiry and the transmission of information relating to that special scheme. The measures necessary to comply with those amendments are to apply from 1 January 2025.

(3) In order to facilitate automated enquiry, it is necessary to define practical details and specifications concerning the access a Member State is to grant the competent authority of any other Member State to information, such as identification details and the value of supplies of goods or services carried out by the taxable person availing itself of the special scheme as applied by the Member State in which the supply takes place.

(4) To ensure that the information referred to in Article 37a(1) and Article 37b(2) and (3) of Regulation (EU) No 904/2010 is exchanged in a uniform manner, the Commission is to adopt practical arrangements for such exchange, including a common electronic message. This would also allow for the uniform development of the technical and functional specifications, as they would follow a regulated framework.

(5) In particular, those practical arrangements should ensure effective transmission and processing of information relating to the registration of small enterprises, required for them to be able to avail themselves of the special scheme outside their Member State of establishment, since Member States would need to modify their electronic interfaces which are currently designed for the scheme allowing for an exemption to be granted only to enterprises established in the Member State in which the VAT is due, so that information can be exchanged in a uniform manner.

(6) Information relating to changes to the identification details, such as the exclusion from the special scheme, should also be exchanged in a uniform manner in order to allow Member States to monitor the correct application of the special scheme within their territory and to combat fraud. To that end, common arrangements for the electronic exchange of such information should be provided.

(7) In order to keep the administrative burden on taxable persons to a minimum, while monitoring the correct application of the special scheme, it is necessary to establish certain minimum requirements for the electronic interface in case of submission of notifications by taxable persons. Member States should not, however, be prevented from providing additional functionalities to further reduce administrative burdens.

(8) Practical arrangements should also be determined to facilitate the provision of details on the measures approved by each Member State in transposing Article 167a, Title XI, Chapter 3, and Title XII, Chapter 1, of Directive 2006/112/EC.

(9) This Regulation should apply from the day from which Article 17(1), point (g), Article 21(2b), Article 32(1) and Articles 37a and 37b of Regulation (EU) No 904/2010 apply.

(10) The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Administrative Cooperation,

HAS ADOPTED THIS REGULATION:

Article 1

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘special scheme’ means the special scheme of exemptions for small enterprises provided for in Title XII, Chapter 1, Section 2, of Directive 2006/112/EC;

(2) ‘Member State of exemption’ means the Member State granting the exemption from VAT to the supply of goods and services made within its territory by taxable persons eligible for exemption under the special scheme;

(3) ‘Member State of establishment’ means the Member State in which the taxable person availing itself of the special scheme is established.

Article 2

Functionalities of electronic interfaces

The electronic interface in the Member State of establishment, by which a taxable person may be required, pursuant to Article 284c(2) of Directive 2006/112/EC, to submit a prior notification, any update to that notification and to report the value of supplies for the use of the special scheme in another Member State, shall offer the facility to save the information and any change to that information, to be provided pursuant to Article 284(3) and (4) and Articles 284a and 284b of Directive 2006/112/EC.

Article 3

Automated exchange of information

Pursuant to Article 21(2b) of Regulation (EU) No 904/2010, the Member State of establishment shall grant the competent authority of other Member States automated access to the following information collected and stored in accordance with Article 17(1), point (g), of that Regulation, via the CCN/CSI network or via an equivalent secure network or system:

(a) the individual number by which a taxable person availing itself of the exemption in any of those other Member States is identified pursuant to Article 284(3) of Directive 2006/112/EC;

(b) name, activity and business sector if relevant pursuant to Article 284(1), second subparagraph, of Directive 2006/112/EC, legal form and address of that taxable person;

(c) in case of change of the place of establishment, the date from which such change takes effect and, if available, the Member State in which the taxable person has decided to establish itself;

(d) the Member States in which the taxable person intends to avail itself of exemption as regards prior notification or update to a prior notification, as referred to in Article 284(3) or (4) of Directive 2006/112/EC;

(e) the Member States in which the taxable person avails itself of exemption under Article 284(2) of Directive 2006/112/EC;

(f) the date of commencement of the exemption in each of the Member States in which the taxable person avails itself of exemption;

(g) the total value of supplies of goods and/or services carried out in the Member State in which the taxable person is established and in each of the other Member States, specified by business sector if relevant pursuant to Article 284c(1), point (c), of Directive 2006/112/EC, during the calendar year of notification and during the calendar years prior to notification, pursuant to Article 288a(1) of Directive 2006/112/EC;

(h) the total value of supplies of goods and/or services, including any amendments to it, carried out per calendar quarter in the Member State in which the taxable person is established and in each of the other Member States, specified by business sector if relevant pursuant to Article 284c(1), point (c), of Directive 2006/112/EC, or “0” if no supplies have been made;

(i) the date on which the Union annual turnover exceeded the amount referred to in Article 284(2), point (a), of Directive 2006/112/EC and the total value of the supplies carried out in the Member State in which the taxable person is established and in each of the other Member States, specified by business sector if relevant pursuant to Article 284c(1), point (c), of Directive 2006/112/EC, or “0” if no supplies have been made, from the beginning of the calendar quarter up until the date the Union annual turnover threshold was exceeded;

(j) the date on which the taxable person is no longer eligible to apply the exemption and the Member State or Member States in which cessation takes effect, following a notification by the Member States of exemption as referred to in Article 284e, point (b), of Directive 2006/112/EC;

(k) the date on which the decision of the taxable person to voluntarily cease applying the exemption scheme takes effect and the Member State or Member States in which cessation takes effect;

(l) the date on which the activities of the taxable person have ceased and the Member States concerned.

Article 4

Transmission of information

(b) without delay, the individual identification number of the taxable person, referred to in Article 21(2b), point (a), of Regulation (EU) No 904/2010, and the date on which it ceased to be eligible for the exemption pursuant to Article 288a(1) of Directive 2006/112/EC;

(c) without delay, the date on which the special scheme for small enterprises has ceased to apply in that Member State.

Article 5

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2025.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 16 November 2021.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 268, 12.10.2010, p. 1.

(2) Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, p. 1).

(3) Council Directive (EU) 2020/285 of 18 February 2020 amending Directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises and Regulation (EU) No 904/2010 as regards the administrative cooperation and exchange of information for the purpose of monitoring the correct application of the special scheme for small enterprises (OJ L 62, 2.3.2020, p. 13).