On 8th November 2016, the Council adopted conclusions on improvements to VAT rules for cross-border transactions.
The conclusions come in response to certain issues raised when a Commission action plan on VAT was discussed by the Council. The conclusions relate in particular to:
- the VAT identification number as an additional condition for application of an exemption in respect of an intra-EU supply
- in order to better tackle VAT fraud, improving the quality and reliability of data used in the EU's VAT information exchange system
- determining the VAT treatment of the transaction chain, including 'triangular transactions' (where goods are shipped from a member state other than that of the supplier and the customer)
- simplifying rules for call-off stock (where goods are sent to a customer's storage facility in another member state)
- work concerning the exemption from VAT of intra-EU supplies
The Commission is asked to present legislative proposals and conduct studies, as appropriate.