The new VAT system for intra-EU transactions

On 4 October 2017, the European Commission proposed some amendments to EU regulations aimed at identifying new procedures to apply to trades between EU Member states. According to the Commission, these changes should prevent cross-border VAT frauds that are mainly committed through the fraudulent application of the non-taxability regime to sham intra-EU transactions. To this end, the Commission suggests to amend Directive 2006/112/EC, introducing the rules for the new final taxation regime for intra-EU trades.

Lastly, through the amendment of the relevant Implementing regulation, the Commission focused on intra-EU sales, proposing solutions which are based on a more practical approach for businesses concerned by a considerable trade and, at the same time, providing Tax Authorities with a more suitable system of guarantees.

For more information, please contact Mario Spera.