The article explains the conditions under which a B2B intra‑community supply of goods can be zero‑rated in the EU. It outlines the required documentation, reporting obligations, and the consequences of non‑compliance.
The supplier must be VAT registered in the dispatch country, the customer must be VAT registered in another EU Member State, the supplier must obtain and keep the customer’s VAT number, both VAT numbers must appear on the invoice, the goods must be transported between EU Member States, and the sale must be reported in VIES via an EC Sales List with a clear VAT‑exemption phrase.
The supplier must retain transport documents showing the goods moved from the dispatch Member State to the destination Member State.
The supplier must charge VAT on the sale, and failure to provide required documentation can result in VAT being reclaimed by the authorities and penalties for non‑compliance.
The supplier must submit an EC Sales List to VIES, including the customer’s VAT number and the sale details.
This summary was published on VATfaqs.com on 16 January 2026. It relates to VAT developments in European Union. The original source is Meridian Global Services.
Read Full Article at Meridian Global ServicesGet VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
The Invoicing Hub · about 2 hours ago
The European Commission has launched a public consultation and a "Reality Check" event to shape the upcoming revision of EU e-invoicing rules, including the e-invoicing directive and EN 16931 standard. The consultation runs until 10 June 2026, while the interactive event is scheduled for 27 April 2026. The Commission expects the revised directive to be adopted in Q4 2026 as part of the Single Market Strategy.
VatCalc · 1 day ago
The European Commission is advancing a deemed supplier regime for ride‑and‑accommodation platforms, with a voluntary launch in July 2028 and mandatory compliance by 1 January 2030. Draft explanatory notes were issued in Q1 2026, with final notes expected in Q2 2027, and the EC will confirm member‑state conditions by 31 December 2028. The regime also revises the short‑term accommodation definition to 30 days and will be evaluated for effectiveness by 1 July 2033.
Vijesti · 10 days ago
The EU has proposed a law allowing governments to temporarily reduce VAT rates to counteract price rises, particularly in fuel, and protect citizens’ standard of living. The proposal is aimed at mitigating inflationary pressures in Montenegro and has broad political support. It follows examples such as Spain’s reduction of fuel VAT from 21% to 10%.
VATCalc · 10 days ago
The EU Parliament has reopened debate on the optional reverse charge mechanism, which is set to expire on 31 December 2026. While the tool has proven effective in curbing missing trader intra‑community fraud in high‑risk sectors, concerns remain about VAT distortions and the need for complementary digital reporting controls. The review signals that reverse charge will stay part of the anti‑fraud toolkit but will be increasingly paired with real‑time transaction monitoring under the ViDA framework.
VatCalc · 12 days ago
EU Parliament has tabled more than 200 amendments to its draft report on a coherent tax framework for the financial sector, with VAT reform at the centre. The proposals aim to narrow the long‑standing VAT exemption for financial services, tax fee‑based B2B services, consolidate the Insurance Premium Tax into VAT, and modernise rules for neobanks, crypto and other digital financial services. A parliamentary vote is scheduled for 26 April 2026, with a vote expected in May and potential plenary adoption in June.
e-Invoice.app · 14 days ago
The European Commission will host a public workshop on 27 April 2026 to review the revision of Directive 2014/55/EU on e‑invoicing in public procurement. The event will outline potential policy measures, gather stakeholder feedback, and discuss the three policy options for the revision. The outcome will influence upcoming compliance requirements, including the ViDA reform that will mandate structured e‑invoicing for intra‑EU B2B transactions by July 2030.
