The Quick Fixes consist of four VAT measures, which form part of the European Commission's action plan towards a destination-based VAT regime. The Quick Fixes, which aim to simplify intra-EU transactions, will come into force in all Member States with effect from 1st of January 2020. These consist of the:
VAT treatment of Call-off stock
As from 1st January 2020, all Member States will be required to introduce a call-off of stock simplification in their VAT laws. This means that (subject to specific conditions) a supplier of stock will not be required to register for VAT in the state where his client resides and charge local VAT, but simply shift the payment of the VAT to his customer.
Attribution of transport in Chain transactions
Aims at simplifying the identification of which transaction in a multiple supply chain is an intra-EU and can therefore benefit from the exemption. Chain transactions entail two or more consecutive supplies of the same goods, where the goods are subject to a single intra-community transport of goods from the original supplier to the final customer in a chain. The general rules stipulate that, in a situation where the moving of goods is taken care of by an intermediary, the supply between the original supplier and the intermediary is considered as the exempt intra-EU supply. However, by way of derogation, an exception is made if the intermediary provides to the original supplier the VAT number under which he is registered in the Member State from which the goods are transported.
Proof of transport to exempt Intra-community supplies
These rules deal with the documentation to be provided as official proof of transport in intra-EU transactions, in order for both the supplier to benefit from VAT exemption. The Quick Fixes aim at simplifying how to prove the transport. As from 2020 the supplier will have to produce two pieces evidence for the transport of the goods. Should the customer (or a third party on his behalf) organize the transport, he will have to provide the supplier with a declaration that the goods have been transported to the Member State of destination.
Mandatory VAT identification number to exempt Intra community supplies
In case of intra-EU transactions, suppliers located in a Member State will have the obligation to verify through the VAT Information Exchange System (VIES) the VAT number of the customer purchasing the goods in order to apply the VAT exemption on intra-community supplies.
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