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impact freight forwarders directly, unless they also sell or buy goods from the EU, Members need to be aware of further implications linked to these changes. The Secretariat has received a number of
enquiries related particularly to the new rules applicable to proof of transport. The new rules standardise the requirements across the EU. The legislation specifies that the ‘vendor’ needs to be in possession of at least two items of non- contradictory evidence, referred to below, issued by two different parties independent of each other.
Evidence of dispatch The legislation specifies that the following shall be accepted as evidence of dispatch or transport: (a) documents relating to the dispatch or transport of the goods, such as a signed CMR document or note, a bill of lading, an airfreight invoice or an invoice from the carrier of the goods;
The EU ‘quick fixes’
New rules standardise VAT requirements across the EU. They specify that the ‘vendor’ needs to be in possession of at least two items of non-contradictory evidence issued by two independent parties
Members may have noticed an increase in requests for documents proving that goods consigned from a seller in one member state to a buyer in another have indeed been delivered. Although nothing new in principle, this is linked to the so-called four EU VAT ‘quick fixes’ which took effect as of 1 January 2020. The four quick fixes were introduced to
improve the day-to-day functioning of the current VAT system until the new regime has been agreed and implemented. The changes include: • Simplification of VAT rules for companies moving goods from one member state to another member state where they are to be stored before being supplied to a customer known in advance. The described situation is
referred to as ‘call-off stock arrangements’.
• Simplification provided for chain transaction situations identifying the supply with which the intra-Community transport of goods should be linked.
• Simplification of the proof of transport of goods between two member states needed for the application of the exemption to intra-Community supplies.
• Clarification that, in addition to the proof of transport, the VAT number of the commercial partners recorded in the electronic EU VAT- number verification system (VIES) is required in order to apply the cross-border VAT exemption under the current rules. Although the above changes do not usually
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(b) the following documents: (i) an insurance policy with regard to the dispatch or transport of the goods, or bank documents proving payment for the dispatch or transport of the goods; (ii) official documents issued by a public authority, such as a notary, confirming the arrival of the goods in the member state of destination; (iii) a receipt issued by a warehouse keeper in the member state of destination, confirming the storage of the goods in that member state.
It is important to recognise that the above
documentary requirements apply to the traders buying/selling products and who want to apply VAT zero-rating for their transactions. The Secretariat has received a number of
enquiries from Members whose customers were implying that they themselves need to control the freight and that VAT may need to be levied on their service bills. Neither of the above is a correct interpretation
of the legislation, which applies to transactions involving sale of goods. Members should be aware of their role and
provide the requested documentation, but at the same time understand the difference between the taxable persons in the transaction and their role as a service provider.
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