VAT Treatment of Import Chain Transactions in the EU: A Call for Clarity

• The CFE has issued an Opinion Statement on the VAT treatment of chain transactions involving imports into the EU.
• Import chain transactions are common in the EU.
• The VAT Directive does not offer explicit rules for the VAT place of supply in import chain transactions.
• The CJEU case law does not provide guidance on this topic.
• This uncertainty has led some Member States to introduce rules, creating further uncertainty in other Member States.
• Unilateral regulations by single Member States are a warning sign that the system is not working properly.
• Businesses need legal certainty to support trade.
• The opinion seeks to outline the issue and offer a resolution.
• The suggested change to the Council Implementing Regulation could provide legal certainty for import chain transactions.
• Clear guidance at a European Union level would also be helpful.

Source: taxadviserseurope.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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