The proposal aims to simplify the legislation and the administrative procedures for public authorities, and for private parties, as regards VAT invoicing. The proposed legislative changes to the VAT Directive include the following measures: simplification of the rules on the chargeability to tax for intra-Community supplies; introduction of a requirement to hold an invoice in order to exercise the right to deduct; extension of optional cash accounting simplification measure to all Member States; introduction of a set of harmonised rules for Business to Business (B2B) invoices; creation of a two-tier system of invoicing, full invoices for B2B supplies, and an option for a simplified invoice for other supplies; equal treatment of an invoice, whether transmitted by paper or by electronic means; and finally, harmonising measures for storage of invoices
