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EU VAT QUICK FIXES

Dec 5, 2019

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Do you move goods within the EU? Will you continue to do so post-Brexit? If the answer is “yes”, you need to make sure you’re compliant with the new VAT regulations – the EU VAT “Quick Fixes”. These aren’t Brexit related, and as many of you are no doubt aware, you’ve got until 1st January 2020 to make sure your house is in order.

So, what are the new rules? And what can you do to make sure you’re compliant?

What are the EU VAT Quick Fixes?

There are four EU VAT Quick Fixes, and they’ve been introduced to simplify the EU VAT system regarding how certain supplies of goods moving within the EU are treated. They cover:

1) The VAT treatment of goods held in another EU member state for one customer – call-off stock

2) Bringing in a mandatory requirement to obtain VAT numbers in order to VAT zero rate intra-EU supplies

3) Clarifying the evidence required to prove goods have left the member state they originate from

4) The VAT treatment of A-B-C chain transactions – for example where goods are sold via intermediaries.

Who’s affected?

Suppliers and/or their business customers who are involved in a supply chain of goods into and within the EU. In short: any business that’s involved with cross-border goods transport. And, if you’re a customer, you should consider the EU VAT Quick Fixes too, because there are obligations on both sides.

What impact will these changes have on your business? You should start thinking about this before 1st January 2020, with a view to reviewing and implementing any supply chain changes as soon as possible. That’s because there’s a risk of non-compliance, both in the UK and the wider EU member states, if you’re not sticking to the new rules from 1 January 2020.

How can the Cooper Parry Indirect Tax team help?

  • We’ll carry out a review of your global transaction supply chains, implementing these EU VAT Quick Fixes and embedding them in the wider business.
  • We’ll use this review to strip back the chain, identifying problems, gaps and opportunities for you to take advantage of along the way.
  • We’ll find and map out typical transaction chains in your business to identify and simplify VAT liabilities in EU Member States and other countries around the world, eliminating most of the burden and freeing up time to tackle any anomalies head on.
  • As part of any review, our specialist team can also offer Customs Duty advice to determine your underlying supply chain duty cost, pre and post-Brexit.

Speaking of the B-word…

As you’ve noticed, there’s no ‘Quick Fix’ to the Brexit situation. But thankfully, whether it happens or not, UK businesses will still need to follow these same VAT rules.

So, if you move goods across the EU, it’s time for us to talk. You can reach our Indirect Tax team at vat@cooperparry.com, and if you’d like to arrange a review or ask any questions, we’d love to chat.

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