05 dec VAT Quick fixes
VAT Quick fixes
From the first of January 2020, EU Member States are obliged to implement four ‘quick fixes’ in their national vat legislation, aiming to improve the working of the EU VAT system.
Highlight topic Quick Fixes
Quick Fix 1
The absolute requirement to have a VAT Identification number of your customer to use the vat zero-rate for intra community transactions.
Quick Fix 2
The aim is to get more uniformity in the proof of transport related to intra community transactions. A set of non-conflicting documents made up in an independent way should be sufficient to be compliant. For example a signed CMR and an invoice for transport costs.
However, this quick fix has no mandatory character and there is also quite some discussion about how to interpret this quick fix in a safe, pragmatic way.
Quick Fix 3
The playing rules regarding call-off stock have been defined in a strict way.
Quick Fix 4
In case of cross border chain transactions, the moment that the transport finds place is decisive in determinating the zero-rated intra community transaction. All other transactions are subject to local Member State VAT.