The European Commission issued letters of formal notice to twelve EU Member States for a delay in implementing the four ‘Quick Fixes’ for VAT. In effect since the 1 January 2020, however the new rules were not enacted in local legislation by those States before that time.
The ‘Quick Fixes’ aim to provide clarity in addition to guidance on the correct VAT treatment of EU supplies of goods. They include the following:
- Harmonisation on how to interpret and hence apply the correct VAT treatment to chain transactions in the EU;
- Tightening of the requirements for zero-rated intra-EU supplies of goods;
- Simplification for cross-border consignment stock cases in the EU; in addition to
- Standardisation of documentary proof in the case of zero-rated intra-EU supplies of goods
The EU Member States yet to make amendments to their local VAT law are:
- Czech Republic
- United Kingdom (currently in transitional period)
Some of the listed Member States are in the process of approving amendments to their VAT laws through local parliaments. In the meantime, they indicated that businesses can rely on local VAT law or the VAT Directive until the new laws are approved.
If you want to find out more about the Quick Fixes, please sign up to our webinar or download a free copy of our whitepaper. Alternatively, please contact one of our VAT experts to discuss how you may be affected by the changes.