The European Commission, in a release on 18 February 2025, announced the Council had adopted a new legislative package introducing an electronic certificate for VAT exemptions, marking a significant step towards simplifying tax procedures and reducing administrative burdens on businesses.
The adopted package amends the EU VAT Directive and the EU VAT Implementing Regulation, replacing the existing paper certificate with a digital alternative. This change aims to increase flexibility, reduce costs, and facilitate the administration of VAT exemptions across the EU.
The electronic VAT exemption certificate will be mandatory from 30 June 2032, allowing businesses to benefit from advanced electronic signatures and compatibility with digital administrative procedures. However, Member States will have the flexibility to continue using paper certificates or existing electronic systems until the mandatory deadline.
The Commission will now work closely with Member States to ensure a smooth technical implementation of the new electronic certificate.
This development follows the Commission’s proposals published on 8 July 2024, which were subject to a political agreement on 10 December 2024 and an opinion from the European Parliament on 13 November 2024.
The new legislation will enter into force 20 days after its publication in the Official Journal of the European Union.
