Action plan on VAT: Towards a Single VAT Area? Conference Chairman: - - PowerPoint PPT Presentation

“Action plan on VAT: Towards a Single VAT Area?”

Welcome to the EFS-seminar on

Conference Chairman: Walter de Wit Rotterdam – February 22, 2018

Agenda

14.00 – 14.05 Opening – Walter de Wit 14.05 – 14.50 Moving towards a single EU VAT area? Quick fixes and the European Commission’s proposals – Gert-Jan van Norden 14.50 – 15.30 Authorized Economic Operator – Experiences and lessons for VAT – Marcel Neggers 15.30 – 16.00 Break 16.00 – 16.35 Removing VAT obstacles to e-commerce in the single market – Marie Lamensch 16.35 – 17.00 Reflections on the VAT Action Plan from a business perspective – Allard van Nes 17.00 – 17.30 Panel discussion – Speakers and Ben Terra 17.30 – 18.30 Drinks and networking

Moving towards a single EU VAT area? The European Commission’s proposals, including quick fixes

• Prof. dr. Gert-Jan van Norden

Tilburg University Meijburg & Co Rotterdam – 22 February 2018

EU VAT system - fit for the future?

The case for a single EU VAT area

“VAT needs to be modernised and rebooted” “Business as usual is not an option” “It is time for the creation of a genuine single EU VAT area for the single market”

VAT Action Plan 2016

Follow up on VAT Action Plan 2016

• 4 October 2017

– Proposal Directive definitive VAT system COM(2017)569 – Proposal Implementing Regulation certain exemptions for Intra-Community transactions, COM(2017)568 – Proposal Council Regulation amending Regulation 94/2010 re CTP, COM(2017)567

• 30 November 2017

– Proposal Council Regulation amending Regulation 94/2010 to strengthen administrative cooperation, COM(2017)706

• 5 December 2017

– Directive 2017/2455 re supplies of services & distance sales – Regulation 2017/2454 re administrative cooperation and combating fraud – Regulation 2017 amending Implementing Regulation 282/2011

• 18 January 2018

– Proposal re VAT rates, COM(2018)20 – Proposal re SME regimes, COM(2018)21

Definitive VAT regime

Current regime B2B supplies of goods

A B

MS A MS B

Intra-Community supply - 0% in MS A Intra-Community acquisition in MS B

2022 ‘Radical’ change B2B supplies of goods

A B

MS A MS B

Supply of goods by A Place of supply: MS B No taxable event

2022 B2B supplies of goods (1) New place of supply & OSS

A B

MS A MS B

Supply of goods by A Place of supply: MS B No taxable event

2022 B2B supplies of goods (2) Certified Taxable Person

A B

MS A MS B

Supply of goods by A Place of supply: MS B Certified Taxable Person (CTP) Reverse charge to B

Definitive Definitive VAT regime

• OSS only à abolishment of CTP
• Also OSS for cross-border services à abolishment of reverse charge

2022 Change B2B supplies of goods Impact on business

Planning and readiness Obtaining CTP status Managing CTP status customers Impact analysis Managing changed VAT compliance Evidence transport goods to other MS Changes ERP systems Managing One-Stop-Shop

Certified Tax Payer (CTP)

Certified Tax Payer (CTP)

Who is he?

Certified Tax Payer (CTP)

• Obtaining CTP status

– application at level of national tax authorities – proof of compliance with a set of sufficiently harmonized and standardized pre-defined criteria, including:

• absence of infringements of tax/customs/criminal law
• high level of control of operations and flow of goods
• evidence of financial solvency

– Established in EU – Mutual recognition MS – Right of appeal

Certified Tax Payer (CTP)

2019 Quick fixes

2019 Quick fixes

• Call-off stock simplification
• Simplification for chain transactions
• Harmonized rules for proof of transport

2019 Quick fixes Call-off stock simplification

• Intra-Community supply of goods (and Intra-Community acquisition) at the

moment of removal from warehouse in MS B

• Instead of transfer of own stock and local supply
• Only between CTP’s (both A and B!)

A B

MS A MS B

IC supply of goods by A Place of supply: MS A IC acquisition by B Place of acquisition: MS B

2019 Quick fixes Call-off stock simplification

• Harmonization between MS
• Certain administrative conditions
• What about simplifications not covered under this quick fix (e.g.

NL consignment stock rules)?

2019 Quick fixes Simplification for chain transactions

• Current framework: ECJ EuroTyre & Toridas
• Simplification in case B arranges the transport
• Only between CTP’s (both A and B!)

A C

MS A MS C

Intra-Community supply - 0% in MS A, but by whom? Intra-Community acquisition in MS C, but by whom?

B

physical flow of goods

MS A MS B MS C MS C

2019 Quick fixes Simplification for chain transactions

• A-B transaction = intra-Community transaction

– B arranges the transport – A and B are both CTP – B tells A to which MS the goods are transported – B is not registered in MS A or MS C

2019 Quick fixes Harmonized rules for proof of transport

• Simplification: presumption of transport outside the MS
• 2 options, both requiring 2 items of non-contradictory evidence
• Tax authorities may rebutpresumption in case of indications of misuse or abuse by vendor or acquirer

A B

MS A MS B

Intra-Community supply - 0% in MS A Intra-Community acquisition in MS B

2019 Quick fixes Harmonized rules for proof of transport

Proposal Implementing Regulation, COM(2017)568

• 1. Vendor = transport (or on his behalf) + CTP + 2 items of non-contradictory

evidence

• 2. Acquirer = CTP & vendor has a written statement of transport by acquirer

(or on his behalf) + 2 items of non-contradictory evidence

2019 Quick fixes Harmonized rules for proof of transport

Accepted items of evidence: a. Document signed by acquirer acknowledging receipt of goods in MS destination b. Documents relating to transport (e.g. CMR / bill of lading / invoice transporter / insurance policy transport) c. Official documents (e.g. notary) confirming arrival of goods d. Receipt confirming storage of goods in MS of destination e. Certificate professional body (e.g. Chamber of Commerce) confirming destination of goods f. Contract or PO vendor - acquirer indicating destination of goods g. Correspondence between parties indicating destination of goods h. VAT return acquirer declaring Intra-Community acquisition

2019 Quick fixes Valid VAT ID number of acquirer required

A B

MS A MS B

Intra-Community supply - 0% in MS A Intra-Community acquisition in MS B

2019 Quick fixes Valid VAT ID number of acquirer required

• Valid VAT ID number of acquirer required for application of

exemption to intra-Community supplies of goods

• Correct & valid VAT ID number also to be included in listing à

risk of VAT assessments

Let’s continue the debate!

Authorized Economic Operator Programme

Marcel Neggers LL.M. AEO programme manager NL Customs National Customs Office Rotterdam Rotterdam – 22 February 2018

Content

• AEO keys facts / general information
• AEO criteria / benefits
• AEO application procedure
• AEO monitoring
• Link AEO with Certified Taxable Person (CTP)

AEO programme – key facts

• New York 9-11-2001: attacks on WTC

US Customs – C-TPAT programme

• World Customs Organisation (WCO)

SAFE Framework of standards to secure and facilitate global trade (International Certification Systems)

• European Union:

AEO programme based on EU legislation (Union Customs Code) operational since 1 January 2008 (2018: about 17.000 AEO)

EU AEO Programme – key facts

• Open to all international logistic supply chain actors
• Recognised in all 28 EU Member States
• Unlimited validity, but robust monitoring
• Two different types of AEO authorisations:

ü

AEO for Customs Simplifications (AEOC)

ü

AEO for Security and Safety (AEOS) requiring the fulfilment of specific criteria and offering different benefits.

AEO Programme - AEO Criteria -

1. Compliance with customs requirements and taxation rules (AEOC and AEOS)

• No serious infringements or repeated infringements of customs

legislation or tax rules over the last 3 years.

• No record of serious criminal offences relating to the economic

activity of the applicant. AEO criterion to be fulfilled by:

• a. the applicant and
• b. the person in charge of the applicant or exercising control
• ver its management and
• c. the employee in charge of the applicant’s customs matters.

AEO Programme - AEO Criteria -

1. Compliance with customs requirements and taxation rules (AEOC and AEOS) Examples of serious infringements of:

• Customs legislation:

– Smuggling, fraud, counterfeiting, infringements related to Intellectual Property Rights (IPR), prohibitions & restrictions.

• Taxation rules:

– Tax fraud, VAT fraud, offences related to excise duties.

• Serious criminal offences related to the economic activity of the applicant:

– Bankruptcy fraud, corruption, cybercrime, money laundering, infringements against health or environmental legislation.

AEO Programme - AEO Criteria -

2. Record Keeping (AEOC and AEOS)

• Satisfactory system of managing commercial- and transport records, which allow

appropriate customs controls and which is consistent with the generally accepted accounting principles.

• Integrated into accounting system to allow cross checks.
• IT security measures, archiving procedures, protection against loss.

AEO Programme - AEO Criteria -

• 3. Proven financial solvency (AEOC and AEOS)
• Good financial standing
• Not subject to bankruptcy proceedings
• Finance from a loan from another person or financial institution letters of comfort

and/or guarantees

• Payment of customs duties and all other duties, taxes and charges which are

collected on or in connection with the import or export of goods.

• applicant can demonstrate sufficient financial standing to meet his/her
• bligations and fulfil his/her commitments

AEO Programme - AEO Criteria -

4. Practical standards of competence or professional qualifications directly related to the activity carried out (AEO-C)

• A proven practical experience of a minimum of 3 years in customs matters.
• A successfully completed training covering customs legislation.
• 5. Appropriate security and safety standards (AEOS)
• Building security
• Access controls
• Cargo security
• Business partner security requirements
• Personnel security
• Appointed security contact person
• Security awareness programmes

AEO Programme - AEO Benefits -

• Easier admittance to customs simplifications (AEO-C)
• Fewer controls
• Lower guarantees
• More favourable treatment

à Prior notification of controls à Priority of carrying out the controls à Choice of place for controls

• Facilitations: e.g. better co-operation other enforcement agencies

AEO Programme

• Overview AEO criteria and AEO benefits -

AEO Programme - AEO application procedure -

• www.douane.nl
• AEO application form with mandatory annexes
• AEO guidelines - Annex 1: Self Assessment Questionnaire

(SAQ & company risk assessment)

• Management statement/commitment

AEO Programme - AEO application procedure -

National Customs Centre AEO: pre-audit all AEO applications Verification of compliance record AEO applicant: 1. Customs transactions / irregularities 2. Revoked or suspended authorisations 3. Information Customs Intelligence units 4. Information from other government agencies (e.g. Tax authorities, Ministry of Justice & Security, Ministry of Infrastructure, Air-& Port authorities.)

NL Customs AEO application procedure

NC AEO RC AEO Audit team Report RC AEO Decision Applicant

Audit assignment

EU database

AEO Programme - AEO monitoring -

• Continuous monitoring by customs
• AEO field audit every 3 years
• Checking AEO criteria based on business

internal monitoring system / risk assessments

• Possible results AEO monitoring:
• Positive result
• Re-assessement
• Suspension
• Revocation

Business monitoring system

Info to customs

Safety & Security Record keeping AEO criteria Compliance

AEO Programme - AEO monitoring -

AEO Programme Link with Certified Taxable Person (CTP)

Why EU VAT system reform?

• Current VAT rules for cross-border trade between companies in the EU

date back to 1993. Update is necessary.

• Less red tape: simplification of invoicing rules
• Tackling VAT fraud cross-border trade

(EU estimate: 50 billion euro annually!). Exemption of VAT cross border trade: high risk factor. VAT fraud identified by EU MS as 1 of top 10 priorities.

AEO Programme Link with Certified Taxable Person (CTP)

EC Proposal: introduction of a Certified Taxable Person (CTP) = a category of trusted business who will benefit from much simpler and time-saving rules.

• CTP criteria: compliance tax rules, reliable internal control

systems/measures and proof of solvency (= comparable with AEO criteria!).

• Benefits: simplified tax procedures, trade facilitation, status of CTP

(certificate) mutually recognized by EU MS.

Thank you for your attention!

Break

Join us in the restaurant! 15.30 – 16.00

After the break: Removing VAT obstacles to e-commerce in the single market – Marie Lamensch

• Prof. dr. Marie Lamensch

Institute for European Studies at the Vrije Universiteit Brussel Member of the European Commission’s VAT Expert Group Academic adviser for the OECD and the World Customs Organisation

54

Removing VAT obstacles to e- commerce in the Single Market

The e-commerce VAT Package – Summary overview

• One directive (Council Directive 2017/2455 amending the VAT Directive - Most of the

new provisions)

• Two regulations (Council Regulation 2017/2459: Simplification re customer location

for TBE and Council Regulation 2017/2454: Electronic exchange of data to combat fraud)

• New/amended provisions for:

– B2C TBE and other services – B2C intra-EU remote sales (currently: distance sales) – B2C Imports

The new rules

The new rules

For TBE:

• Current:

– VAT in the country of destination from first EUR. – An EU and a non-EU MOSS for streamlining VAT collection on TBE (bulk declaration per country 27 lines). – 2 pieces of non-contradictory evidence to determine customer location (place of taxation). – Platforms deemed suppliers if “take part” to the transaction (Art. 9a Impl. Reg).

The new rules

• New (as of 2019):

– A first threshold: option to charge VAT at origin if turnover related to cross-border TBE is below EUR 10.000 – For EU suppliers only. – A second threshold: only one piece of evidence must be collected to determine customer location if domestic and cross-border TBE turnover is below EUR 100.000 – For EU suppliers only. – Non-EU suppliers with an EU VAT number: may use the non-Union scheme. – Home country rules for invoicing (but record keeping for 10 years).

The new rules

New (as of 2021)

• Deadline for submitting VAT returns extended (from 20th day to last day of the month

following the end of the tax period).

• Correction to previous VAT returns:

– Can be made in a subsequent return instead of the original return to be corrected (up to 3 years back). – With reference to the MSC, tax period and VAT amount.

The new rules

For services other than TBE (as of 2021):

• Union and non Union scheme becomes available (From MOSS to OSS)
• 10.000 EUR threshold not applicable (not even for EU suppliers)

The new rules

For intra-EU B2C supplies

Currently

• EUR 35.000 (per country) threshold: taxation at destination when exceeding the threshold.

New (as of 2021):

• EUR 35.000 (per country) threshold is removed and replaced by (EU-wide) EUR 10.000
• threshold. The threshold takes into account both supplies of services and of goods.
• Union Scheme becomes available (possible that supplies of goods and services will have

to be reported seperately 27 lines X 2).

• No more mandatory invoice requirement for such sales

The new rules

• Platforms deemed to receive and supply the goods in the cases where they

“facilitate” : New Article 14a(2) VAT Directive: “Where a taxable person facilitates, through the use

• f an electronic interface such as a marketplace, platform, portal or similar means,

the supply of goods within the Community by a taxable person not established within the Community to a non-taxable person, the taxable person who facilitates the supply shall be deemed to have received and supplied those goods himself”.

The new rules

• Deeming provision does not apply in C2C supplies (eg. Ebay) – out of scope
• Deeming provision does apply even in domestic sales (still only when supplier is non-

EU)

• Deeming provision does apply irrespective of whether platform is established in the

EU or not and irrespective of whether the platform is registered to the OSS or not

• Deeming provision only applies for sales below EUR 150 (like OSS)

The new rules

For B2C imports Currently:

• Customs procedure
• Exemption for low value goods (EUR 22)

New (As of 2021):

• Removal of exemption for low value goods
• Replacement of the customs procedure by a hybrid system for supplies below EUR 150:

– Optional OSS registration. – A fall back procedure: transporter liable to collect the VAT (monthly returns).

• Deeming provision for platforms cf intra-EU distance sales.

The new rules

• Optional OSS:

– Obligation to appoint tax representative (exc. NO because cooperation agt) – Import exempt if supplier registered in the OSS database – Periodical declaration and payment

• Liability of the transporter:

– Must take “appropriate measures to ensure that the correct tax is paid” – No reduced rate under this procedure (a seperate customs declaration must be filled)

The new rules

• Deeming provision for platforms:

New Art. 14a(1) VAT Directive: “Where a taxable person facilitates, through the use of an electronic interface such as a marketplace, platform, portal or similar means, distance sales of goods imported from third territories or third countries in consignments of an intrinsic value not exceeding EUR 150, that taxable person shall be deemed to have received and supplied those goods himself”. New Art. 66a VAT Directive: “in respect of supplies of goods for which VAT is payable by the person facilitating the supply pursuant to Article 14a, the chargeable event shall occur and VAT shall become chargeable at the time when the payment has been accepted.” ( can be an issue for platforms keeping money until delivery for security purposes).

The new rules

New Article 242a VAT Directive: record keeping for all platforms (deemed supplier or not) “Where a taxable person facilitates, through the use of an electronic interface such as a market place, platform, portal or similar means, the supply of goods or services to anon-taxable person within the Community in accordance with the provisions of Title V, the taxable person who facilitates the supply shall be

• bliged to keep records of those supplies. Those records shall be sufficiently

detailed to enable the tax authorities of the Member States where those supplies are taxable to verify that VAT has been accounted for correctly”.

The unfixed flaws

The unfixed flaws

TBE:

• Enforcement (in particular non-EU businesses)? Mid 2016: 12 900 registrations for

EU as compared to 1 100 registrations for non EU…

• How to distinguish B2B from B2C?

B2C intra-EU supplies of goods

• EUR 35.000 threshold was difficult to monitor. What about EUR 10.000 threshold?

The unfixed flaws

• For B2C imports

– What was the issue again? Undervaluations by offshore businesses! Does the new system avoid undervaluations??

• OSS: Suppliers (you know, those who currently make the wrong value declarations!)

now have to declare and pay the VAT directly… weeks after the import was made… No border controls as they are entitled to a “fast lane”.

• Transporter: Data provided by suppliers (you know, those who currently make the wrong

value declarations!). Quality of risk assessment procedures?

– High administrative costs for customs replaced by compliance costs for businesses/transporters – How can the EC claim that it will reduce compliance costs?

The implementation challenges

The implementation challenges

Proposal for an IR expected by the end of the year… For B2C TBE:

• 1 piece of evidence a relief for small (EU businesses) but what about government

perspective?

• How to monitor the EUR 10.000 threshold? (impact of EC proposal on rates?)

For intra-EU B2C supplies of goods (distance sales):

• How to monitor the EUR 10.000 threshold?
• Deeming provision (see infra)

The implementation challenges

For B2C imports

• How to monitor optional reliance on OSS? What cost for the customs and what level
• f compliance can we expect? (exempt import and periodical declaration and

payment - How to control?).

• For businesses using MOSS: Impact of proposal on rates? What if total freedom for

MS without even common definitions for classes of goods/services?

• How to increase compliance when fall back procedure applies? What impact on

postal sector?

The implementation challenges

+ How to implement the deeming provision (not in initial proposal)? Relying on platforms sounds like a good idea. However:

• Which platforms?

– Probably out of scope (as announced to VEG): aggregator websites that only send a link to another website or marketplace, comparison websites, search engines.

• Same criteria as for TBE? “take part” is narrower than “facilitates”…
• MS willing to catch more than those processing payments … But…

The implementation challenges

Most probably in scope:

• When platform brings customer and seller together and this results in a sale via the

platform

• The actions finalising the supply are carried out via the platform (customer and

seller’s identification, ordering and payment, delivery information)

• The platform authorises the charging to the customer or the delivery of the goods
• The platform sets the general T&C of the supply

Most probably also: if platform provides storage/fulfillment services or customer relating services (eg assisting with returns), the deeming provision cannot be rebuted…

The implementation challenges

Additional issue related to the creation of two supplies (seller to platform and platform to customer): To which supply does the transport relate? Seems like linking the transport to the supply made by the platform to the customer is the favoured

• ption.
• In import situations: deemed B2B supply without transport: supply is outside the EU so no EU VAT
• In intra-EU situations:

– If the non EU seller has the goods in MS1 and the platform is in same MS: deemed domestic supply – If the non EU seller has the goods in MS1 and the platform is on MS2: deemed B2B supply is in MS 1 (where goods are located): the platform will incur VAT in MS 1 and will have to reclaim it under the 8th Directive… – If the non EU seller has the goods in MS1 and the platform is outside the EU: deemed B2B supply is in MS1: the platform will incur VAT in MS1 and will have to reclaim it under the 13th Directive…

The implementation challenges

• Issue of returned goods and related VAT reimbursement (supplier to reimburse sale

price and platform to reimburse VAT…)

• More generally: OSS will become main collection tool for cross border supplies. Need

to reinforce infrastructure (in particular if definitive system proposal is adopted)

Final comments

Final comments

• Directive/regulations were adopted. Seems like an irreversible process.
• However:

– Lack of enforcement jurisdiction is a fundamental and inherent weakness of a vendor collection model (fraud is not properly addressed) – Reliance on intermediaries in the transaction chain a dangerous approach because

• Risks of double or non taxation
• Legal uncertainty
• Complexity
• Platforms will adjust

Thank you for your attention!

marie.lamensch@vub.be

Reflections on the VAT Action Plan from a business perspective

Allard van Nes LL.M. FrieslandCampina Rotterdam – 22 February 2018

Our key figures (2016)

11.0 billion

Euros revenue Export to over 100 countries

33

Facilities in countries employees

21,927

member dairy farmers

18,906

millions

• f consumers

Every day

We operate worldwide…

12,922 employees

Europe

6,046 revenue * 66 locations

Asia and Oceania

3,523 revenue * 7,786 employees 36 locations

North and South America

169 employees 6 locations 379 revenue *

Africa and the Middle East

1,053 revenue * 1,050 employees 6 locations

Nigeria, Ghana, Ivory Coast, United Arab Emirates, Saudi Arabia, Egypt Netherlands, Germany, Belgium, Greece, Hungary, Romania, Russia, France, Spain, Italy, Austria, United Kingdom Indonesia, Malaysia, Singapore, Thailand, Myanmar, Vietnam, Philippines, China, Hong Kong, Pakistan, India, Japan, New Zealand United States of America, Brazil

Figures 2016 | * in millions of euros

…with our brands

Single VAT Area – Huge impact

2015 Total Annual Intra EU sales volume was EUR 3.063 billion.

Evolution of intra EU-28 export of goods, January 2002 - November 2016 (EUR billion). Source: Eurostat website

Action plan on VAT – The road to a Single VAT Area

Action plan on VAT – The road to a Single VAT Area

Recent proposals: Cornerstones (column III): a) Destination principle for VAT on cross border B2B transactions - Vendor should charge VAT of destination country unless … b) Certified Tax Payer (CTP); c) One Stop Shop Quick fixes (column II): a) Simplification call-off stock arrangements; b) Requirements for VAT-id and identity in recapitulative statements for 0% rate; c) Chain transactions – legal certainty; d) Burden of proof 0% rate – legal certainty Other proposals: a) More flexibility for Member States on reduced VAT rates (column IV) b) Administrative cooperation between Member States (column II) c) Simplified VAT rules for SME’s (column I)

The definitive VAT regime – Preparing for the change I

Prepare for CTP application - if not already AEO. Important for Intercompany transactions But the criteria will need to be more specific

• What is a “serious infringement of taxation or customs rules”?
• What is sufficient to have “a high level of control”?
• What are the criteria for solvency? Will the there be one ratio for all EU countries?
• What will be the relative weight of these criteria?
• 13a par.4: A taxable person applying for CTP shall supply all information required by the

tax authorities in order to enable them to take a decision.

The definitive VAT regime – Preparing for the change II

Establish VAT rate for products in 26 other EU countries:

• 26 different methods
• Member States will publish their rules on the EU website,

but that information is not legally binding.

• More flexibility for Member States to operate several

reduced rates is not helping!

Example – establishing the VAT rate

= 78 searches

The definitive VAT regime – Preparing for the change III

Setting up compliance:

• Invoice requirements should eventually be determined

by the country of the supplier.

• Logic for VAT determination in ERP systems need to be

reinvented

• SAFT, Direct Reporting and Split Payments also

applicable to cross border transactions?

• Will there be harmonization/coordination?

Definitive VAT system – How will it work?

Supplier Buyer 2 Buyer 1 CTP Netherlands Germany

• 3. Goods + invoice

Buyer 3 Poland

• 2. Goods + invoice
• 1. Goods + invoice

Definitive VAT system – How will it work?

• Transaction 1: VAT payment

subject to reverse charge.

• Transaction 2: Supplier charges

German VAT; pays the VAT over to the German authorities through the One Stop Shop.

• Transaction 3: Supplier charges

Polish VAT – application of Split payment? VAT return through One Stop Shop; Polish SAFT required? Split payment?

Supplier Buyer 2 Buyer 1 CTP Netherlands Germany

• 3. Goods + invoice

Buyer 3 Poland

• 2. Goods + invoice
• 1. Goods + invoice

Definitive VAT system – How will it work?

Supplier Buyer 1 CTP Netherlands Germany

• 2. invoice

Buyer 2 France

• 1. invoice

Goods

Definitive VAT system – How will it work?

Sup- plier Buyer 1 CTP Netherlands Germany

• 2. invoice

Buyer 2 France

• 1. invoice

Goods

• Art. 138a: Transport shall be allocated to

supply made by Supplier to Buyer 1 if

• Buyer 1 communicates the country of

arrival; and

• Buyer 1 is not VAT registered in

Netherlands. Supplier 1 invoices under the reverse charge to Buyer 1. (With French VAT if not CTP) Buyer 1 supplies domestically in France (no border Crossing). Still reverse charged?

Definitive VAT system – How will it work? Audits

Proposal amending Reg. (EU) No 904/2010 strengthening administrative cooperation in the field of VAT: the Member State of establishment must start an enquiry when at least two Member States require this. Officials of requesting MSs shall take part in the administrative enquiry

Action plan on VAT – The road to a Single VAT Area

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