VAT in the Digital Age – die Zukunft der E-Rechnung in der Umsatzsteuer

Abstract

Due to the EU Directive ”VAT in the Digital Age”, there will be significant changes in the European VAT system in the coming years. The directive consists of three main pillars. This paper focuses on the pillar of electronic invoicing and digital reporting requirements and the changes in this area. Small and medium-sized enterprises that do not yet use e-invoicing face the challenge of early adaptation to the new requirements. However, the directive also offers opportunities for digitizing and automating business processes. The aim of this paper is to analyze the directive and highlight the general impacts as well as the technological impacts for SMEs and how future solutions might look. The structure of the paper is divided into three main chapters. Firstly, the fundamentals, the current legal situation regarding e-invoicing, and definitions related to electronic invoicing are explained to establish an understanding for the subsequent analyses. This is followed by an analysis of the EU directive "VAT in the Digital Age" dated December 8, 2022. The focus here is on the changes, the timeline for implementation, the opportunities, and challenges, as well as the existing e-invoicing solutions in various countries. The last chapter deals with a case study on the future implementation and application of the directive. To demonstrate the current state of research, the method of content analysis is applied. Using a legal source analysis of the legal text, the directive proposal, and current literature from professional journals, the VAT in the Digital Age directive is interpreted using legal and business methods. Furthermore, a case study is conducted. The results of the paper show that the implementation of the new directive brings both challenges and opportunities for small and medium-sized enterprises. It is emphasized that early engagement with the requirements of the directive is beneficial for companies to further develop in the areas of digitization and automation in the long term. However, the exact implementation of the directive in Austria and state support are still open and require further investigation. Companies should act according to their size and existing systems. Small companies that have so far worked with data management programs like Word or Excel can consider using a web-based solution. Medium-sized companies, which may still be growing, can consider implementing an ERP system. In the context of digitization, every company will eventually need an e-invoicing system.

Date of Award	2024
Original language	German (Austria)
Supervisor	Marina Luketina (Supervisor)