The quick fixes are designed to simplify the VAT rules for B2B EU cross-border supplies of goods. The areas addressed are those that have given rise to the most confusion over the last number of years. Taxpayers have often found themselves caught in the middle of disputes between tax authorities each trying to tax the same cross border transaction. To the extent that these changes will mitigate that they are to be welcomed.
However, these changes may result in less flexibility and may require changes not only to current VAT treatments but also to current supply chains, IT systems and accounting processes.
The precise impact on businesses will vary but all businesses involved in cross border trade of goods will be impacted by EU VAT reform and that impact will be felt beyond the tax function.
The 4 quick fixes are also an opportunity to benefit from call-off stock/consignment stock relief in Member States that don’t currently apply it and it allows consistent processes to be put in place that will meet requirements across the EU. Done correctly this should reduce multi-jurisdictional cross border issues.