The German Federal Cabinet has approved a draft bill to implement cross-border supply of goods simplifications within the EU; also known as the Four VAT ‘Quick Fixes’. Without delay, it is proposed that the measures would have an effective date of 1 January 2020.
The ‘Quick Fixes’ aim to provide clarity and guidance on the correct VAT treatment on EU supplies of goods and includes the following:
- Harmonisation on the VAT treatment of 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
- Standardisation of documentary proof in the case of zero-rated intra-EU supplies of goods
This “Quick Fixes” bill follows many other EU Member States in implementing the European Commission’s 2018 Directive; this is in regards to the harmonisation and simplification of certain rules in the VAT system for the taxation of trade between Member States.
Your business can prepare for the four VAT “Quick Fixes” now. Watch our ‘Quick Guide to the Quick Fixes’ webinar here.
If any of the above changes affect your business, please contact one of our VAT experts to find out how we can assist you.