The forthcoming statistics on intra-community services in the framework of the new EU Regulation on VAT taxation Paola Anitori - ISTAT 2 nd WPTGS, Paris 16-18/11/2009

General outline(1) Directive 2008/8/EC (taxation purposes): the place of VAT taxation where the recipient is established Supplier taxable person Recipient established in another EU Member State “Reverse charge” rule invoice net of VAT It depends on Derogations (and on how the national law will apply EC Regulation)

General outline(2) taxable person 1. Physical person being also economic operator; 2. Non-taxable legal person identified for VAT purposes; 3. Taxable person carrying out also activities not considered taxable in a general sense. Non-taxable person relates to all the remaining categories including private consumers.

General outline(3) Generic services General rule Special services Derogation Place of supply of services by type of service and type of recipient N.B: “consumed” is intended in a wide sense. See further on

General outline(4) Generic services Special service all services not derogated, including Advertising Banking, financial, insurance services Supply of staff Radio and TV broadcasting Telecommunication (from 2015) Intermediaries Services connected with immovable properties Supply of transport (goods and passengers) Service connected with movable properties (processing) Restaurants and catering (even on board of vessels etc.) Hiring of means of transport (from 2013)

General outline(5) Examples of “special” services subject to derogation (see Annex 1) PROCESSING

Technical aspects of Intrastat-services (1) Taxable persons obliged to fill in a listing of the services provided Required variables: VAT number of the supplier Partner Vat Number Amount in Euro ID invoice Type of Service (6 digit CPA codes) Mode of providing the service (one-time, periodical…) Type of payment Country of payment VIES VARIABLES OTHER VARIABLES

Technical aspects of Intrastat-service (2) data collection made exclusively via web even for small business. collection regards both supplied and received services. periodicity of the listings according to an exemption threshold of euros (monthly listings if the threshold is exceeded in each month of the previous quarter; otherwise quarterly statements)

Technical aspects of Intrastat -services (3) Inward/outward processing always declared as a service CPA2008 to classify services (link with EBOPS2010 and BPM6) The deadline for electronic transmission of the statement to the national Revenue Agency anticipated (19th of the following month)

Impact on Intrastat-goods (1) unique exemption threshold of euros for both services and goods regardless to the flow, as displayed in the table. About firms will become monthly declarants = growing accuracy of short-term data expected

Impact on Intrastat-goods (2) same periodicity for goods and services within each flow ( if a firm is a monthly declarant for services it will be a monthly declarant for goods and vice versa) different periodicity for dispatches and arrivals if a firm deal with both flows. EDI data transmission in order to stop paper declarations often transmitted in late deadline for sending the statement anticipated from the 25th to the 19th of the following month. outward/inward processing declared not only in the section for services but also in the section for goods.

Perspectives for FTS,NA and FATS statistics(1) FRAMEWORK: Use of administrative data to integrate sample surveys, a practice supported by Eurostat Intrastat-services is a good chance to integrate the existing system based on sample surveys with fiscal records NA, FATS and BoP statistics potential beneficiaries in terms of relevance, coverage, accuracy and timeliness FTS in goods complemented by data on services

Perspectives for FTS,NA and FATS statistics(2) Methodological work needed to reconcile the new data source to the existing statistical frame Internal WG with representatives of the production lines interested to the data to carry on reconciliation (definitions, regulations, concepts etc.) FTS unit will analyze data coming in during 2010 Reconciliation with BoP data relating to Extra-Ue trade (sample survey) when data are validated First result expected by end of 2010