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.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
LinkedIn · 1 day ago
Advocate General Kokott’s Opinion C‑603/24 clarifies how intra‑group transfer price adjustments interact with VAT. The opinion states that such adjustments are not automatically a separate VAT supply, but may alter the taxable amount under Articles 73 and 90 of the VAT Directive if they reflect a variable purchase price agreed upfront. Only when an actual service for consideration exists is a separate supply considered.
BDO · 2 days ago
The European Parliament’s ViDA package introduces mandatory e‑invoicing and near real‑time digital reporting for cross‑border EU transactions from 1 July 2030, requiring the EU electronic invoicing format. Businesses must report transaction data within 10 days of the taxable event, and member states may extend domestic e‑invoicing to before, on, or after that date with transitional periods up to 2035. The initiative aims to harmonise VAT rules, reduce fraud, and lower compliance costs across the EU.
VatCalc · 3 days ago
The EU has agreed an interim €3 customs levy for parcels that will take effect on 1 July 2026. Romania and Italy have already implemented national levies of 25 RON (~€5) and €2 respectively for low‑value parcels, while the Netherlands and France remain in proposal stages. The move aims to curb VAT and customs fraud on low‑value e‑commerce shipments.
Law360 · 3 days ago
The OECD has released guidance to help policymakers design real‑time reporting mandates for VAT transactions. The guidance outlines principles for implementing real‑time data submission to tax authorities, a feature increasingly adopted by member states. It aims to standardise reporting requirements and improve compliance.
LinkedIn · 4 days ago
The EU has abolished the VAT de‑minimis rule, making VAT applicable to all commercial goods. Starting 1 July 2026, a €3 fixed duty per product type will apply to low‑value e‑commerce consignments, with a separate handling fee expected from late 2026 and the €150 duty‑free threshold slated to disappear by mid‑2028. Member states such as Romania have already introduced €5 logistics fees from 1 January 2026.
Bloomberg Tax · 7 days ago
Bloomberg Tax argues that digital services taxes (DSTs) are ineffective and distort the digital economy, citing low revenue and compliance burdens. The article highlights that several countries—including Canada, India, Malaysia, and France—have moved away from DSTs or are considering alternatives, and it advocates shifting to a VAT framework for digital services.
