Pending introduction of the new VAT system, four short-term ‘quick fixes’ will be made regarding the VAT aspects of trade between the member states. Discussions are ongoing on a definitive VAT system to replace the current ‘transitional’ VAT arrangements, which have been applied since 1993.
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 1 January 2020.
Source: Council of the EU, Press release of 2 October 2018