Considerations on COM(2017)568 - Amendment of the VAT Implementing Regulation as regards certain exemptions for intra-Community transactions

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dossier COM(2017)568 - Amendment of the VAT Implementing Regulation as regards certain exemptions for intra-Community transactions.
document COM(2017)568 EN
date December  4, 2018
 
table>(1)In its communication of 7 April 2016 on an action plan on VAT, the Commission announced its intention to put forward a proposal for a definitive value added tax (VAT) system in relation to cross-border business-to-business trade between Member States. The Council, in its conclusions of 8 November 2016, invited the Commission to propose in the meantime certain improvements to the Union VAT rules for cross-border transactions, inter alia, for the purposes of exemptions in respect of intra-Community transactions.
(2)Directive 2006/112/EC sets out a number of conditions for the exemption of supplies of goods from VAT in the context of certain intra-Community transactions. One of those conditions is that the goods have to be dispatched or transported from one Member State to another.

(3)However, the divergent approach amongst Member States in the application of those exemptions for cross-border transactions has created difficulties and legal uncertainty for businesses. This is contrary to the objective of enhancing intra-Community trade and to the abolition of the fiscal borders. It is therefore important to specify and harmonise the conditions under which the exemptions can apply.

(4)As cross-border VAT fraud is primarily linked to the exemption for intra-Community supplies, it is necessary to specify certain circumstances in which goods should be considered as having been dispatched or transported from the territory of the Member State of supply.

(5)In order to provide a practical solution for businesses and also to provide assurance for tax administrations, two rebuttable presumptions should be introduced in Council Implementing Regulation (EU) No 282/2011 (2).

(6)The call-off stock simplification arrangements should be accompanied by appropriate recording obligations in order to ensure their correct application.

(7)Implementing Regulation (EU) No 282/2011 should therefore be amended accordingly,