Towards the adoption of a definitive VAT system for intra-Community BtoB transactions

Simplify your international development

  • Home
  • Towards the adoption of a definitive VAT system for intra-Community BtoB transactions
Demandez votre remboursement
de tva 2018 !
Date limite au 30 juin 2019/span>
Vous êtes une entreprise hors UE et vous avez effectué des
achats dans un État membre de l'UE !
Vous pouvez peut être en obtenir le rembrousement

Towards the adoption of a definitive VAT system for intra-Community BtoB transactions

On 25 May 2018, the European Commission proposed a series of technical amendments aimed at introducing a definitive VAT system for intra-Community BtoB transactions. These changes should simplify the current system in depth and could come into effect on July 1, 2022.

The current transitional VAT system

When the common market was created in 1993, it was initially planned to set up a system in which the seller of a good is not liable for VAT in the Member State of departure.

Realizing that this system would not be ready by the time the borders disappeared, the Commission decided to set up a less ambitious system. This temporary system is still in place 25 years later.

This transitional system currently in force divides a single intra-Community sale into two separate transactions with regard to VAT:

  • The seller makes an intra-Community supply in the Member State of departure which is exempt from VAT;
  • The buyer carries out a taxable intra-Community acquisition in the Member State of destination.

This system increases the opportunities for fraud and presents a great complexity for businesses, thus constituting a brake on intra-Community trade.

The definitive VAT system to come

The abolition of intra-Community acquisitions

On May 25, the European Commission proposed amendments concerning intra-community BtoB transactions in order to set up a definitive VAT system to replace the current transitional VAT system.

With the adoption of the definitive system, the sale of goods being transported intra-Community transport will now be considered as a single transaction for VAT purposes qualified as an “intra-union supply”.

Thus, the notion of intra-Community acquisition will be abandoned.

The regime applicable to intra-union deliveries

The definitive system will also modify the territoriality rules concerning deliveries between two Member States.

Intra-Union BtoB deliveries will thus be taxable only in the State of destination.

The VAT payer in the Member State of destination will in principle be the seller. However, a reverse charge mechanism may apply under the following conditions:

  • The seller is not established in the State of destination;
  • The buyer is a certified taxable person.

ASD Group is a VAT specialist company present in 25 countries worldwide. Do not hesitate to contact our experts for all your VAT issues.

Subscribe to ASD Group's newsletter
and receive all our latest information and news.
Newsletter modal
Nos experts sont à votre disposition pour répondre à toutes vos questions.
Pakar kami siap membantu Anda untuk menjawab semua pertanyaan Anda.
Our experts are at your disposal to answer your questions.
Nuestros expertos están a su disposición para responder a todas sus preguntas. ¡Realice una consulta gratuita!
Os nossos especialistas estão à sua disposição para responder a todas as suas questões.
I nostri esperti sono a vostra disposizione per rispondere a tutte le tue domande. Approfitta di una consulenza gratuita !
Unsere Experten stehen Ihnen zur Verfügung um Ihnen alle Fragen zu beantworten.
Na váš dotaz obratem odpovíme. Využijte možnosti konzultace!
Nasi eksperci są do Twojej dyspozycji, aby odpowiedzieć na Twoje pytania.
Experții noștri sunt la dispoziția dumneavoastră pentru a vă răspunde la toate întrebările. Profitați de consultanța gratuită !
Onze deskundigen staan tot uw beschikking om al uw vragen te beantwoorden. Krijg gratis advies!
Нашите експерти са на разположение, за да отговорят на въпросите Ви. Възползвайте се от безплатна консултация!