The EU Four VAT ‘Quick Fixes’ came into effect on January 1 2020, promising seismic change for the way British companies export to Europe. Are you ready?
For those considering expansion into EU markets or an up-scaling of production in existing foreign nations, the upcoming EU Four VAT “Quick Fixes” should be top of your to do list of things to address. The Four VAT Quick Fixes came into force on the January 1 2020. They’re designed to provide short-term solutions to a number of problems that exist under the current rules for intra-EU transactions and are the first step in a series of reforms which will see moves towards greater harmonisation and streamlining of the EU’s VAT system.
And yet, despite their potential to be seismic, businesses across the board are not aware of them or the impact they will have. Crucially, they affect EU compliance issues – so if ignored or not properly adopted, the changes could end up costing businesses significantly.
The below guide will provide information on the key aspects of the EU Four VAT Quick Fixes. For more in depth and accounting specific advice, please see our recently published whitepaper on the EU VAT Four Quick Fixes.
#1 – Call-off stock
This Quick Fix relates to the movement of stock from one EU member state to a warehouse in another, where there is the intention to make a domestic sale. Usually, this scenario creates a “call-off stock” situation and the supplier is liable for VAT registration in the country in which…