Tax alert 38 – EU Council Adopts short-term fixes to current EU VAT System

On 4 December 2018, the EU Council adopted three short legislative acts aimed at adjusting some of the EU’s VAT rules in order to fix certain specific issues pending the introduction of a new VAT system. These changes are to be applicable from 1 January 2020.

We have summarized the most important aspects below:

  • Call-off Stock

A simplified and uniform treatment for call-off stock arrangements (transfers of stock to a warehouse at the disposal of a known acquirer in another EU Member State) will be introduced.

  • Intra-Community supplies of goods

The VAT identification number of the customer will become an additional mandatory condition in order to benefit from the VAT exemption for intra-Community supplies of goods.

A common framework is established for the documentary evidence required to claim a VAT exemption for intra-EU supplies.

  • Chain Transactions

To enhance legal certainty in determining the VAT treatment of chain transactions, uniform criteria will be used at EU level.


Author: Silviu Savu – Manager, Indirect Tax


For additional information, please contact:

Alex Milcev, Partner – Head of Tax & Legal


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