Move Goods across the EU? This Update on the planned EU “Quick Fixes” is for you!
The EU adopted a VAT Action Plan in April 2016 as part of the drive to reduce fraud and improve VAT compliance and the consistency of the application of VAT rules across the member states. Since then we’ve seen a number of technical measures come out of the EU and the latest series of changes are being referred to as the ‘Quick Fixes’. These “Quick Fixes” will apply from 1 January 2020 and are provisional until a new EU wide VAT system takes effect from July 2022. With the EU’s aim to simplify and make the application of VAT across all EU member states more consistent these specific changes will apply to the following four areas:
- Simplified treatment for call-off stock
- Uniform rules to simplify chain transactions
- Mandatory VAT identification number to apply the zero VAT rate
- Simplified proof of intra-Community supplies
Businesses currently involved with cross-border transactions involving goods need to consider how the new VAT rules could affect their transactions in 2020.
The ‘simplifications’ are quite complex and will result in changes to accounting, record keeping processes and lead to a potential increase in VAT compliance responsibilities. Any affected businesses needs as a minimum to ensure they are aware of the impact that these changes could have on their supply chain. Clearly we don’t know what is happening with Brexit nor what our relationship with the EU and VAT would look like until end of October. Affected businesses need to be aware of their supply chain issues as these rules will apply across the EU member states where trading entities in group structures and partners, suppliers and clients will be based whether or not the UK remains in the EU Single Market.
Centurion is always here when VAT gets complicated and can offer a short “Inform and Plan” session with any business that needs support in this area. email@example.com