Regulation (EU) 2018/1912 and Directive (EU) 2018/1910 amending Regulation (EU) No 282/2011 and Directive 2006/112/EC regarding certain exemptions for intra-Community transactions entered into force on 1 January 2020
1. Exemptions for intra-community transfers of goods
As of 2020, the main conditions for applicability of a VAT exemption for intra-Community transfers of goods are:
1) the buyer indicates his VAT identification number to the vendor at the beginning of the shipment process, and
2) the vendor has complied with the obligation to submit a correct recapitulative return (i.e. D390) concerning the transaction, and
3) there is proof of transport of goods from a Member State to a destination outside its territory but within the Community.
For this purpose, the following documentation must be made available:
If the transport is performed by the vendor or by a third party in his name:
1) documents regarding the shipping or transport of the goods, e.g. a signed CMR, a bill of lading, an airfreight invoice or an invoice from the carrier of the goods, and/or
2) other proof connected to the above, such as: an insurance policy for the transport, bank documents proving payment of the transport costs, or confirmation of receipt of goods issued by a warehouse keeper or by a public authority (e.g. notary) upon arrival of the goods.
These two types of documents must be issued by two different parties independent of each other and also independent from the vendor and the buyer.
If the transport is performed by the buyer or by a third party in his name:
1) one of the types of documentation mentioned above, and
2) a written declaration issued by the buyer stating that he has arranged for the transport of the goods. The declaration must contain certain information such as the date and place of arrival of the goods and the identification number of the individual accepting the goods on behalf of the buyer (as the case may be).
2. Supply chain transactions
If the same goods are supplied successively and those goods are dispatched or transported from one Member State to another Member State directly from the first supplier to the last customer in the chain, the dispatch or transport shall be ascribed only to the supply made from the supplier to the intermediary operator.
By way of exception, the dispatch or transport shall be ascribed only to the supply of goods by the intermediary operator where the intermediary operator has communicated to the supplier the VAT identification code issued to him by the Member State from which the goods are dispatched or transported.
3. Call-off stock arrangements
Subject to fulfilment of certain conditions, simplification measures leading to exemption from registration for VAT purposes of the supplier in the Member State of destination are extended at European Union level. Until 2020, only a few Member States had opted to apply such simplification measures.
By Carmen Mazilu, Tax Advisor, and Monica Colt, Tax Advisor, Noerr