The European Commission has published an updated list of advance rulings made under the VAT cross-border rulings pilot scheme. This project allows companies planning cross-border transactions, between two or more participating Member States to request a ruling on the VAT treatment for the transactions they envisage.
A company generally makes a request by applying to the tax authority of the Member State where it is registered for VAT. Applications should be made in accordance with the conditions governing national administrative rulings in that Member State.
Procedures for applying and receiving advance rulings vary between the different national tax authorities. For example, in Poland processing an advance ruling is free of charge but in Romania, fixed fees apply. In Germany, a fee in proportion to the amount of tax that would be incurred on that anticipated transaction must be paid.
If two or more companies are involved, the request should only be introduced by one of them, acting on behalf of all parties. As part of the cross-border ruling process, companies should note that the data they provide can be shared with the tax authorities of the other Member States involved in the transaction.
The VAT cross-border rulings pilot scheme was launched by the EU VAT forum in 2013. Member States currently participating, include: Belgium, Denmark, Ireland, Estonia, Spain, France, Italy, Cyprus, Latvia, Lithuania, Malta, Hungary, Netherlands, Portugal, Slovenia, Finland, Sweden and the United Kingdom. The latest list can be found
Contact our VAT experts now and find out how this change could affect your business.