From the Netherlands: European Commission Proposes Final Technical Measures for a Definitive EU VAT System
On May 25, 2018, the European Commission released the detailed technical amendments to the EU VAT Directive that supplement their recent proposed overhaul of the EU VAT system for intra-EU trade of goods.
In October 2017, the European Commission presented a proposal towards a definitive VAT system for intra-EU trade of goods. In this proposal, the EU Commission introduced the cornerstones of this definitive VAT system for intra-EU trade as well as a number of quick fixes to the current EU VAT system. The definitive VAT system should enter into application in 2022 whereas the quick fixes should enter into force on January 1, 2019.
Putting the cornerstones of the definitive VAT system in place gives rise to important changes to the current EU VAT Directive. In this new proposal, the EU Commission releases the detailed technical amendments to the EU VAT Directive.
With the publication of this technical proposal, the EU Commission hopes to kick-start the discussion between EU Member States on a definitive VAT system for intra-EU trade of goods. Given the impact the changes proposed by the Commission will have on their business, it is our recommendation to clients to already start assessing this impact, for example, on their supply chain set-up and ERP systems. Please contact us if you would like to discuss such impact assessment.
Please click here to read more about the proposals of the EU Commission for a definitive VAT system for intra-EU trade of goods and suggested technical amendments.