The Council adopted three short legislative acts aimed at adjusting some of the EU’s VAT rules in order to fix four specific issues pending the introduction of a new VAT system.
These relate to:
- call-off stock. The text provides for a simplified and uniform treatment for call-off stock arrangements, where a vendor transfers stock to a warehouse at the disposal of a known acquirer in another member state;
- the VAT identification number. To benefit from a VAT exemption for the intra-EU supply of goods, the identification number of the customer will become an additional condition;
- chain transactions. To enhance legal certainty in determining the VAT treatment of chain transactions, the texts establish uniform criteria;
- proof of intra-EU supply. A common framework is established for the documentary evidence required to claim a VAT exemption for intra-EU supplies.
These adjustments are due to apply from 1 January 2020.
In parallel, discussions are ongoing on a definitive VAT system to replace the current ‘transitional’ VAT arrangements, applied since 1993. Pending introduction of the new system, four short-term ‘quick fixes’ are proposed. Links below:
- Directive as regards harmonising and simplifying certain rules in the VAT system for the taxation of trade between Member States
- Regulation as regards the exchange of information for monitoring the application of call-off stock arrangements
- Regulation as regards certain exemptions for intra-Community transactions