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EU Quick Fix VAT reforms

January 2020 four reforms to improve efficiency of B2B EU VAT regime

Since 1 January 2020, the EU introduced four changes to EU B2B compliance system to help harmonise the rules and make cross-border trade easier. These were part of the 2016 VAT Action Plan, and are being introduced ahead of the wider Definitive VAT System reform proposed for 2020.

Follow all the European Union’s completed and planned reforms via VAT Calc’s EU VAT reform tracker. The four Quick Fix changes are as follows.

  1. Define the documentation member states may demand of traders seeking to claim zero-rating intra-community supply of goods. Traders responsible for the good’s transport must retain two pieces of non-contradictory evidence that the goods were transported to in the customer’s member state.  Or if the customer is responsible, The supplier must obtain written evidence of the transport from the customer, supported with two pieces of evidence. This can be the signed CMR; or insurance policy, official documentary proof of transport etc.
  2. Harmonisation for the rules of call-off stock supplies and non-resident suppliers of goods avoiding the need to VAT register when they place goods on use or return under their customer’s control in another EU state. Only when the customer takes the goods out of the stock, the supplier is deemed to perform a direct intra-Community supply of goods to the customer.
  3. New rules in respect to allocation of the transport in chain transactions. According to these rules, the intra-Community transport is to be allocated to the supply made to the intermediary, who arranges the transport. There is an exception to this general rule in case the intermediary communicates to its supplier its VAT identification number granted by the EU Member State from which the goods are dispatched or transported. In that situation, the transport of the goods would be allocated to the supply made by the intermediary to its customer.
  4. VAT identification number of the customer constitutes an additional substantive condition for the application of the exemption in respect of an intra-Community supply of goods. Respective exemption is applicable only if the customer has provided its VAT number from another EU Member State and the supplier has reported it in its EC Sales list.

EU VAT reforms

Reform (click for details) Update
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2035 Harmonisation of EU e-invoicing and domestic regimes Jan 2035
2030 Digital Reporting Requirements and e-invoicing harmonisation July 2030
Structured e-invoices supercede paper invoices July 2030
EC Sales lists replaced by Digital Reporting Requirements July 2030
2028 EU Customs reforms Published May 2023
€150 import consignment threshold removed Published May 2023
2027 Single VAT Registration in the EU - extension of OSS July 2027
Call-off stock VAT simplification ends July 2027
Harmonisation of B2B Reverse Charge rules July 2027
Proposal for VAT treatment of the platform economy July 2027
2026 DAC8 harmonised crypto asset reporting Approved May 2023
2025 VAT registration thresholds equivalence foreign businesses 1 Jan 2025
Virtual events VAT rule changes 1 Jan 2025
Financial Services VAT exemption reform proposals Consultation complete; proposal awaited
Tour operator margin scheme VAT reforms EC undertaking fresh review
2024 Payment providers' seller transaction reporting and bookkeeping obligations In effect since 1 Jan 2024
2023 DAC 7 - marketplace reporting harmonisation In effect since 1 Jan 2024
2022 IOSS reforms to prevent double taxation On hold
EU reduced VAT rate freedoms Entered into force 6 April 2022
VAT in the Digital Age proposals Published Dec 2022
EU DAC8 cryptocurrency tax reporting proposals Published Dec 2022
VAT Gap Initiative Q3 2022
EU Definitive VAT System On hold
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option


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