The European Commission has published its proposals for restructuring the VAT system, including the introduction of the Certified Taxable Person (CTP) concept. The concept and authorisation criteria are similar to those for AEO and offer significant benefits to reliable taxable persons.
The European Commission has published its proposals for amending European Union Council Directive 2006/112/CE on the common system of value added tax (VAT Directive) and other VAT normative acts.
The Commission’s proposals are aimed at, among other things, introducing the notion of CTP, which is similar to the existing customs concept of Authorised Economic Operator (AEO). CTP represents a category of reliable taxable persons with certain benefits starting in the transition period to the new VAT system, as of 1 January 2019, such as:
• less restrictive rules for the application of simplification measures applicable to call-off stocks;
• simplified intra-Community chain transactions (triangular operations);
• simplified process for justifying the exemption for intra-Community supplies of goods.
Companies which obtain AEO authorisation by the time of applying the European Commission’s proposed provisions will be able to obtain the CTP status more easily and enjoy new VAT benefits as of 1 January 2019.