State Secretary endorses broader application of simplified A-B-C scheme

• State Secretary Endorsement: The State Secretary for Finance supports a broader application of the simplified A-B-C VAT scheme, addressing interpretation issues in Article 141(c) of the VAT Directive.
• Clarification of Application: The amendment clarifies that the broader application does not align with Article 141 of the VAT Directive or Article 37c of the VAT Act 1968 when the Netherlands is the destination and C is not established there.
• Implementation Date: The amended decision, allowing wider application in certain chain transactions, will take effect on October 11, 2024.

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Article 141(c) of the EU VAT Directive 206/112/EC

Article 141
Each Member State shall take specific measures to ensure that VAT is not charged on the intra-Community acquisition of goods within its territory, made in accordance with Article 40, where the following conditions are met:
(c) the goods thus acquired by the taxable person referred to in point (a) are directly dispatched or transported, from a Member State other than that in which he is identified for VAT purposes, to the person for whom he is to carry out the subsequent supply;

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Source Taxlive

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