EU VAT system, Quick Fixes

Quick fixes, VAT reduction and changes in online trade 2021

With the quick fixes, an interim solution came into force in January 2020 to unify and improve the VAT system within the EU. The new regulations on consignment stocks, chain transactions and intra-Community deliveries have already been in force for six months, and applications are now available to help with their implementation.

For example, ClearVAT presented its tool CHECKVAT for checking VAT identification numbers (VATIN) at the AWB webinar. Since the tax exemption for intra-Community deliveries has been more strictly regulated, the supplier is now responsible for ensuring that the customer's VATIN is valid at the time of delivery. Otherwise, the tax exemption does not apply. With CHECKVAT, ClearVAT offers a complete solution for the automated verification of VATIN, which enables suppliers to validate several customers at the same time and archive the results for later revision.

The second part of the webinar revolved around the Second Corona Tax Assistance Act, including the VAT changes from 1 July 2020. The reduction for six months, which was surprisingly decided by the legislator, poses a number of challenges for traders: these include the correct declaration of the advance VAT return, the significance of the time of performance of the turnover and the special features of the exchange of goods.

The AWB online session ended with an outlook on the changes in e-commerce 2021. The reforms which have now been postponed to July 1, 2021, include the planned introduction of a one-stop shop for the VAT registration of distance sales and the abolition of the exemption from customs duties of up to 22 euros for goods from third countries. These topics will be explained in detail in another webinar.

We will be happy to keep you informed about the next webinar dates. Simply send us an e-mail.

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