EU VAT system amendments to come into force on January 1st 2020.
5th December 2018: The European Council confirmed four adjustments will be made to the current EU VAT rules in order to improve them.
The four short-term ‘quick fixes’ are related to the trade between the member states.
“This package of proposals is aimed at fixing some of the practical problems we are experiencing with the current VAT rules”, said Hartwig Löger, Minister for Finance in Austria and also currently holds the Council presidency. “At the same time, it is of high practical relevance for our businesses who will benefit from the harmonised rules.”
These adjustments will come into effect on 01/01/2020 and are summarized below:
- Call-off stock. The proposals provide 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 proposals establish uniform criteria;
- Proof of intra-EU supply. A common framework is proposed for the documentary evidence required to claim a VAT exemption for intra-EU supplies.
For more information please get in touch.
See more Taxback International Articles
What are your VAT deadlines?
12th December 2019: We've listed the 3 major deadlines you need to know to reclaim VAT on your business travel.
Expected VAT rate changes in 2020
12th December 2019: Czech Republic, Hungary, Ireland and Poland are amongst the countries to be impacted by VAT rates changes in 2020.
Switzerland: Mandatory VAT return e-filing in 2020
27th November 2019: Switzerland is one of the last countries to allow paper filing but the electronic submission of the Swiss VAT return will become obligatory from 1/1/2020.