On 27 September 2019, the government presented its Finance Bill for 2020. This included proposals to implement the four ‘Quick Fixes’ for VAT in France. These are simplifications to the cross-border supply of goods within the EU. The new rules take effect on 1st January 2020.
This new law follows many other EU Member States in implementing the European Commission’s 2018 Directive with regards to the harmonisation and simplification of certain rules in the VAT system for the taxation of trade between Member States. The quick fixes will include:
- simplification for call-off stock arrangements;
- uniform criteria to simplify the VAT rules on ‘chain transactions’;
- substantive conditions which add the need to obtain and report a valid VAT identification number to exempt B2B intra-EU movements of goods; and
- a framework for documentary evidence to support the intra-EU movement of goods.
You can see our ‘Quick Guide to the Quick Fixes’ by signing up to our webinar here.
The new bill will also see the first steps towards implementing the European Commission’s 2017 Directive; this is in regard to E-Commerce and the distance sale of goods.
This new bill includes:
- a definition of intra-Community distance selling of goods and distance selling of goods imported from non-EU countries;
- the Import One Stop Shop (IOSS) scheme to report in a single Member State all distance sales of imported goods with a value of EUR 150 or below and for which the place of taxation is in the Member State of consumption. This will also include an exemption from VAT due on importation if using the IOSS scheme; in addition
- a special regime for the declaration and payment of import VAT for taxable persons presenting goods to customs in respect of consigned goods with a value not exceeding EUR 150, available when the IOSS scheme is not used.
If you are affected by any of the change above, please contact one of our VAT experts for further information.