December 18 2019

Changes to VAT Act proposed

Source: IBFD Tax Research Platform News

On 6 December 2019, a proposal for amendments (the proposal) to the VAT Act was submitted to the parliament by some of its members. The proposal addresses documents required for evidencing intra-Community supplies.

The previous amendment, gazetted on 6 December 2019 provided that, as from 1 January 2020, suppliers must obtain a document (invoice, protocol, etc.) for intra-Community supplies, as well as documents evidencing dispatching/transporting the goods to other EU Member States (as provided in article 45a of Implementing Regulation (EU) 282/2011) in order to apply a 0% VAT rate to an intra-Community supply. Other mandatory conditions for applying the 0% VAT rate to intra-Community supplies are as follows:

  • the recipient must provide the supplier with its VAT number issued by another EU Member State; and
  • the intra-Community supply must be reported correctly in the VIES return (EC Sales List) of the supplier.