Interim VAT measures agreed by ECOFIN

Dec 10, 2018

ECOFIN recently adopted proposals to adjust some of the EU's VAT rules in order to fix specific issues pending the introduction of a new VAT system.

The legislative adjustments will apply from 1 January 2020 and are as follows:

  • 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;
  • In order to benefit from a VAT exemption for the intra-EU supply of goods, the identification number of the customer will become an additional condition;
  • To enhance legal certainty in determining the VAT treatment of chain transactions, the texts establish uniform criteria;
  • A common framework is established for the documentary evidence required to claim a VAT exemption for intra-EU supplies.

Discussions are also ongoing on the introduction of a definitive VAT system to replace the current 'transitional' VAT arrangements, applied since 1993.