During its meeting of December 4, 2018 the Economic and Financial Affairs (ECOFIN) 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 short term fixes 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.
The adjustments are due to apply from January 1, 2020.
The texts of the 3 legislative acts adopted by ECOFIN on December 4, 2018 can be found here:
· 12848/1/18 REV 1 “COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the harmonisation and simplification of certain rules in the value added tax system for the taxation of trade between Member States”
· 12850/18 “COUNCIL REGULATION amending Regulation (EU) No 904/2010 as regards the exchange of information for the purpose of monitoring the correct application of call-off stock arrangements”
· 12849/18 “COUNCIL IMPLEMENTING REGULATION amending Implementing Regulation (EU) No 282/2011 as regards certain exemptions for intra-Community transactions”
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