Commission urges GERMANY to take the necessary measures to adapt its IT system in order to allow for automated exchange with other Member States of certain information related to the application of VAT legislation to call-off stock arrangements
The Commission has decided to send a reasoned opinion to Germany for failing to fulfil its obligation to grant other Member States automated access to the information concerning call-off stock arrangements via the electronic system VIES (VAT Information Exchange System). The IT system requirements for call-off stock arrangements aim at allowing Member States to exchange more easily electronic data with each other with a view to fighting fraud. Call-off stock arrangements is one of the VAT simplifications referred to as “quick fixes” that entered into force on 1 January 2020. The call-off stock arrangements require, amongst others, that Member States adapt their IT systems in order to allow for the exchange of information between Member States as required by Council Regulation 904/2010. However, the lack of necessary adaptations on the side of Germany makes it more difficult for other Member States to carry out the controls necessary to prevent VAT fraud or tax evasion. If Germany does not act within the next two months, the Commission may decide to refer the case to the Court of Justice of the European Union.
Source ec.europa.eu
Latest Posts in "European Union"
- ECJ: Joint VAT Liability Applies Even After Supplier Insolvency, Clarifies Article 205 Scope
- ViDA SVR Ends Call-Off Stock: Why Businesses Need Modern VAT Technology by July 2028
- VAT Export Exemption: Objective Criteria Prevail Over Supplier’s Documentation Errors, Rules CJEU in C-602/24
- VAT Liability of Assignee Persists Even if Assignor Ceases to Exist, EU Court Rules
- Can Businesses Recover VAT if Supplier’s VAT Number Is Revoked? Key Insights from Latest ECJ Case
