ECOFIN recently adopted proposals to adjust some of the EU’s VAT rules in order to fix specific issues pending the introduction of a new VAT system.

The legislative adjustments will apply from 1 January 2020 and are as follows:

• A simplified and uniform treatment for call-off stock arrangements where a vendor transfers stock to a warehouse at the disposal of a known acquirer in another member state;
• In order to benefit from a VAT exemption for the intra-EU supply of goods, the identification number of the customer will become an additional condition;
• To enhance legal certainty in determining the VAT treatment of chain transactions, the texts establish uniform criteria;
• A common framework is established for the documentary evidence required to claim a VAT exemption for intra-EU supplies.

Discussions are also ongoing on the introduction of a definitive VAT system to replace the current ‘transitional’ VAT arrangements, applied since 1993.