Trade in goods between European Union member countries follows a particular regime. Council Directive 2006/112 / EC of 26 November 2006 provides undertakings with a European legal framework as to the treatment of these transactions and the extent of their treatment.
VAT EXEMPTION ON INTRA-COMMUNITY DELIVERIES
An intra-Community supply is a supply of tangible personal property (eg automobiles and books) shipped or transported from one Member State of the European Union to another Member State. These operations carry an effective transfer of ownership.
In order to qualify for an exemption, the transaction must meet certain conditions. They are harmonized in Directive 2006/112 / EC (to which some exceptions are mentioned).
In fact, when an intra-Community supply is made by a taxable person established in a first Member State of the European Union to another taxable person or non-taxable legal person established in a second Member State of the European Union, the Directive indicates the obligation for Member States to exempt VAT for this operation.
VAT EXEMPTION ON INTRA-COMMUNITY ACQUISITIONS
An intra-Community acquisition is determined by obtaining the power of disposal as an owner of tangible personal property shipped or transported by the seller, the acquirer or on their behalf, from another Member State of the European Union to an acquirer established in another Member State.
In order to qualify for the exemption, the operation must meet a number of conditions laid down in Directive 2006/112 / EC.
Intra-EU trade is subject to many rules that are important to know and understand in order to carry out transactions within the EU. ASD Group is an international company specialized in VAT management. Do not hesitate to contact ASD Group experts for all your problems.