During its meeting of October 2, 2018 the Economic and Financial Affairs (ECOFIN) Council came to a political agreement on four adjustments to the EU's current VAT rules to fix specific issues.
The Council agreed on the four 'quick fixes' initially presented by the Commission:
· 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.
These adjustments will apply from January 1, 2020
According to a press release issued by the ECOFIN Council, the directive is expected to be adopted without further discussion once the European Parliament has delivered its opinion.
Click here to be forwarded to the VAT “quick fix” package as agreed on by the ECOFIN Council on October 2, 2018.
Copyright – internationaltaxplaza.info