- VAT treatment for intra-EU B2B sales of goods involves zero-rating by the seller and self-assessment by the customer
- Tax authorities in the EU have been strict on zero-rating on the seller’s side to prevent fraud
- CJEU case B2 Energy s.r.o. addressed conditions for zero-rating cross-border sales of goods
- Quick fixes introduced in 2020 added conditions for zero-rating, including VAT identification number and reporting in recapitulative statement
- Challenges with cross-border transactions, such as drop shipments, remain
- Triangulation simplification in EU VAT Directive simplifies chain sales involving three different Member States
- Final business in the chain becomes liable for VAT under reverse charge system, simplifying process for middle party
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
