EU Consultation on VAT treatment of B2B INTRA-EU sales of goods

Under the EU Action Plan a further issue for consideration is the move to taxation at the point of destination for all goods sold intra EU on a B2B basis.

Currently we in the UK would zero rate the sale of the goods to a VAT registered EU customer and the customer will self-assess for the acquisition VAT and declare that through their own VAT return in country. The consultation paper issued in January 2017 looks at future options including:

• Whether the goods should be taxed at the place they arrive or
• Taxed at the place the customer is located

It also considers who should account for the VAT:

• The supplier
• The customer

Comment is also made on the plans for “simplification measures” including the extension of the One Stop Shop or MOSS system as we know it, already available to UK businesses supplying digital services to private consumer as the mechanism through which other EU states VAT on sales can be declared.

A further simplification is the creation of a certification for a Certified Taxable Person (CTP) for compliant businesses who could continue to be allowed to account for VAT themselves on their purchases of goods from EU member states.