VAT Quick Fixes 2020: Quick fix #1

As we have already reported in previous news items, the so-called VAT quick fixes have been approved and should be implemented in the EU member states as from January 1, 2020. Our Sr. VAT Specialist, Daniëlle van der Meulen - Idema will describe these quick fixes more in detail in the following months.

Harmonization and simplification

One of the quick fixes relates to the harmonization and simplification of the rules for providing proof of intra-Community transport of goods. This proof is required to substantiate the application of the VAT zero rate/exemption. The quick fix establishes a common framework for documentary evidence for intra-Community supplies.

It is often a point of discussion between taxpayers and tax offices what set of documents should be sufficient to serve as evidence in case of an incomplete or missing CMR (also when the transport is actually arranged by the customer instead of the supplier that applies the VAT zero rate/exemption). Member States have different requirements, like the Spediteursbescheinigung in Germany. In Poland there is also often a dispute how many documents a taxpayer should provide in order to proof the transport out of Poland.

The quick fix details the pieces of evidence required (depending on who arranges the transport) and which documents can serve as proof. Businesses can use 2019 to set up a procedure to collect the required documents as evidence for zero rated intra-Community supplies.

Read more about the quick fixes

Would you like to read more about the quick fixes? Find below Daniëlle's blogs about other quick fixes.

Quick fix #2: simplified treatment of call-off stock in the European Union
Quick fix #3: conditions zero VAT rated intra-Community supply
Quick fix #4: the new rule for chain transactions
Quick fix #5: quick fix on call-off stock and losses

17 Jan 2019 at 11:05 am
1 min