New guidance for optional call-off stock rules, plus changes to the EC Sales List
7 May 2020
UK legislation was enacted on 16 March so that UK businesses have the choice to account for VAT at the time of call-off instead of the existing rules requiring a deemed transaction at the time of arrival of goods. HMRC updated its guidance with details of the new optional rules for UK customers, and how the new rules impacts UK suppliers when completing the EC Sales List.
EU VAT – the four ‘quick fixes’ are effective 1 January 2020
31 October 2019
As there has been an extension to the Brexit timescale, UK businesses may have to comply with the EU’s four ‘quick fixes’ to the VAT system. The quick fixes are effective from 1 January 2020 and intended to simplify the VAT treatment for specific business to business EU cross-border transactions. The legislation for the quick fixes are Council Directive (EU) 2018/1910 and Council Implementing Regulation (EU) 2018/1912. HMRC has not yet published guidance on the positon with the quick fixes and we will update the website when this information is available.
The four quick fixes are:
- Simplified treatment of call off stock
The simplification for suppliers not having to register locally where they hold call off stock, providing qualifying criteria is met, is extended to all member states.
- Uniform rules to simplify chain transactions
There may be changes for the intermediary in a chain transaction where they arrange the transport.
- Mandatory VAT registration number to zero-rate intra-EU sales of goods
Suppliers must ensure that the customer provides an EU VAT number in order to secure zero-rating and so that an EC Sales List can be completed.
- Simplified proof of intra-EU supplies
The EU has set out a simplified list of documents applicable to all member states. Taxpayers require at least two acceptable forms of evidence which are not contradictory and which are issued by independent parties.
More in depth detail on each of the quick fixes is provided in this Tax Adviser article.
Draft withdrawal agreement
14 November 2018
Notice to stakeholders
The European Commission has issued guidance on VAT in a ‘no-deal’ scenario.
Withdrawal of the United Kingdom from the EU
Information on the impact of the United Kingdom’s withdrawal from the EU in the area of customs and taxation. It includes technical notices on a variety of topics.