With entry into force on 1 January 2020, there are new rules of common application in all Member States concerning the requirements for exemption from VAT on intra-Community transfers of goods, and documentary evidence is of particular importance in this area. transactions.
In essence, the new requirements required to prove / benefit from VAT exemptions for intra-Community transfers of goods are as follows:
– The goods are supplied to another taxable person or to a non-taxable legal person acting as such in a Member State other than the State of departure of the dispatch or transport of the goods;
– The taxable person or non-taxable legal person to whom the delivery is made is registered for VAT in a Member State other than the Member State of departure of the dispatch or transport of the goods and has communicated this VAT identification number to the supplier. .
However, the above exemption does not apply:
– Where the supplier has not fulfilled the obligation to provide a summary statement; or
– The summary presented by him does not contain the correct information regarding this delivery unless the supplier can duly justify the failure to the satisfaction of the competent authorities.
Member States are required to apply these provisions from 1 January 2020, so information on the recapitulative statements and their delivery becomes essential for the application of VAT exemptions for intra-Community transactions in goods.
Evidence of an intra-Community transaction of goods
For the purposes of the above exemptions, the goods shall be presumed to have been dispatched or transported from a Member State outside their territory, but within the Community in any of the following cases:
– The seller indicates that the goods were transported or shipped by him or by third parties acting on his behalf and that he is in possession of at least two non-contradictory evidence, issued by two independent parties, of the seller. and the acquirer confirming the carriage or dispatch; or
– The seller is in possession of a written declaration from the buyer indicating that the goods were transported or shipped by him or a third party acting on behalf of the buyer, mentioning the Member State of destination of the goods and the date of issue, the name and address of the purchaser, the quantity and nature of the goods, the date and place of arrival of the goods and, in the case of delivery of means of transport, the identification number of the means of transport, and the identification of the person who accepts the goods by buyer's account.
The buyer must provide the seller with the above written declaration by the tenth day of the month following delivery.
Proof of carriage or dispatch shall be accepted as follows:
– Documents related to the transportation or shipment of the goods, such as a signed CMR bill of lading, a bill of lading, an air freight invoice, or an invoice issued by the goods carrier;
– an insurance policy relating to the transport or shipment of the goods or bank documents proving payment for the transport or shipment of the goods;
– Official documents issued by a public entity, such as a notary, confirming the arrival of the goods in the Member State of destination; or
– A receipt issued by a depositary in the Member State of destination confirming the storage of the goods in that State.
How can Moneris help?
If you have any questions regarding the application of these changes, or if you would like to review your business processes and internal procedures, ensuring their compliance with legal requirements and obligations, please contact us. Moneris can provide full support to improve your business processes, organization and internal planning, impacting on organizational efficiency, quality of management decisions and the results achieved.
For more information and / or additional information, please contact your Moneris manager or use the usual media: [email protected] | +351 210 316 400