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08 November 2016

European Council: VAT rules – Cross-border transactions


The Council adopted conclusions on improvements to VAT rules for cross-border transactions during a meeting of the Economic and Financial Committee.

The conclusions come in response to certain issues raised in an April 2016 Commission action plan.

They relate in particular to:

-       the VAT identification number as an additional condition for application of an exemption in respect of an intra-EU supply;

-       in order to better tackle VAT fraud, improving the quality and reliability of data used in the EU's VAT information exchange system;

-       determining the VAT treatment of the transaction chain, including 'triangular transactions' (where goods are shipped from a member state other than that of the supplier and the customer);

-       simplifying rules for call-off stock (where goods are sent to a customer's storage facility in another member state);

-       work concerning the exemption from VAT of intra-EU supplies.

Full conclusions



© European Council


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