Associate Director Rob Janering discusses the EU four ‘Quick Fixes’ for VAT with Industry Europe.
Business and industry are in a continued state of flux as Brexit rolls forward, uncertainty following each extension. Whilst it is out of the hands of business to determine what happens with regards the Brexit process, independently of the UK’s departure negotiations there are upcoming changes (EU VAT Quick Fixes) for businesses operating in the EU which all organisations should be preparing for.
The EU’s Four VAT ‘Quick Fixes’ will come into force in January 2020, and are set to have a substantial impact on businesses across the board. The ‘Quick Fixes’ are scheduled as part of the EU’s attempts to modernise the VAT system. It’s important to note that they are designed as a temporary measure to be implemented before the more substantial, permanent changes due to be established in July 2022 come into force. However, despite the best of intentions, questions are being raised as to whether they will make VAT compliance easier. Their objective is to streamline and harmonise the VAT system, but these kind of wide-ranging changes to international accounting measures seldom occur without some teething issues.
The ‘Quick Fixes’ propose to tackle four main areas: call-off stock arrangements, chain transactions, substantive conditions to exempt B2B intra-EU movement of goods, and evidence required to support that movement. I’ve developed a guide to analyse each of the four ‘Quick Fixes’, its pros and contras, and some key steps that business and industry should consider implementing.