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EU Quick Fixes – VAT Forum Report

Review of 2020 4 Quick Fixes finds room for practical improvements

The European Commission’s VAT Forum has produced a review of the 2020 VAT Quick Fix measures. These were introduced to effect four changes to the rules around B2B intra-community (within EU borders) VAT transactions to help reduce fraud and harmonise the rules between member states.

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Issues identified by the report

In broad terms, the VAT Forum found consistent application of the four Quick Fixes. But it did identify a number of specific problems:

  • The Explanatory Notes produced to support the Quick Fixes were limited in scope and therefore resulted in varying interpretations by the member states. Also, it’s important to produce regular updates as business models evolve.
  • Member states’ tax authorities had limited sight of how other member states were implementing the fixes.
  • Linked to the above, member states were sometimes coming to different interpretations of the rules, thereby resulting in variations.
  • Definitions of criteria for warehousing (see call-off stocks) were inconsistent between states
  • Variations in the transport definitions, including stop-overs, express couriers for small value goods and own means of transport
  • Day-to-day issues with the VIES system and tax authorities’ VAT registration databases.

The four quick fixes were:

  1. Harmonise VAT rules on call-off stocks to reduce the need for foreign VAT registrations
  2. Mandatory checks on VAT numbers for the right to zero-rate intra-community supplies (see our VAT Number Checker for service)
  3. Confirm documentary evidence traders must retain to prove movement of goods across EU borders and qualify for zero-rating
  4. Introduce new rules on allocating the transport to chain transactions (see our VAT Advisor for tool to help with this)

EU VAT reforms

Reform (click for details) Update
Contact VATCalc to learn how our single VAT determination, reporting and e-invoicing platform can help you manage and thrive with global compliance change
2028 Digital Reporting Requirements and e-invoicing harmonisation Published Dec 2022
Structured e-invoices supercede paper invoices Published Dec 2022
EC Sales lists replaced by Digital Reporting Requirements Published Dec 2022
2025 Single VAT Registration in the EU - extension of OSS Published Dec 2022
Marketplace deemed supplier extended to EU sellers Published Dec 2022
Proposal for VAT treatment of the platform economy Published Dec 2022
EU IOSS mandated for marketplaces Published Dec 2022
Call-off stock VAT simplification ends Published Dec 2022
Harmonisation of B2B Reverse Charge rules Published Dec 2022
VAT registration thresholds equivalence foreign businesses On track
Virtual events VAT rule changes Agreed
2024 Payment providers' seller transaction reporting and bookkeeping obligations On track
EU permissions on e-invoicing removed Published Dec 2022
2023 DAC 7 - marketplace reporting harmonisation On track
Financial Services VAT exemption reform proposals Consultation complete; proposal 2023
Tour operator margin scheme VAT reforms EC undertaking fresh review
2022 IOSS reforms to prevent double taxation Proposals early 2022
EU reduced VAT rate freedoms Enter 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
EU Generalised Domestic Reverse Charge VAT Mechanism In effect, although no country has adopted this voluntary option
2015 B2C electronic services VAT reforms - MOSS return In effect
Contact VATCalc to learn how our single VAT determination, reporting and e-invoicing platform can help you manage and thrive with global compliance change

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