Welcome to the EFS-seminar on “Action plan on VAT: Towards a Single VAT Area?” Conference Chairman: Walter de Wit Rotterdam – February 22, 2018
Agenda 14.00 – 14.05 Opening – Walter de Wit 14.05 – 14.50 Moving towards a single EU VAT area? Quick fixes and the European Commission’s proposals – Gert-Jan van Norden 14.50 – 15.30 Authorized Economic Operator – Experiences and lessons for VAT – Marcel Neggers 15.30 – 16.00 Break 16.00 – 16.35 Removing VAT obstacles to e-commerce in the single market – Marie Lamensch 16.35 – 17.00 Reflections on the VAT Action Plan from a business perspective – Allard van Nes 17.00 – 17.30 Panel discussion – Speakers and Ben Terra 17.30 – 18.30 Drinks and networking
Moving towards a single EU VAT area? The European Commission’s proposals, including quick fixes Prof. dr. Gert-Jan van Norden Tilburg University Meijburg & Co Rotterdam – 22 February 2018
EU VAT system - fit for the future?
The case for a single EU VAT area “VAT needs to be “Business as usual modernised and is not an option” rebooted” “It is time for the creation of a genuine single EU VAT area for the single market”
VAT Action Plan 2016
Follow up on VAT Action Plan 2016 • 4 October 2017 – Proposal Directive definitive VAT system COM(2017)569 – Proposal Implementing Regulation certain exemptions for Intra-Community transactions, COM(2017)568 – Proposal Council Regulation amending Regulation 94/2010 re CTP, COM(2017)567 • 30 November 2017 – Proposal Council Regulation amending Regulation 94/2010 to strengthen administrative cooperation, COM(2017)706 • 5 December 2017 – Directive 2017/2455 re supplies of services & distance sales – Regulation 2017/2454 re administrative cooperation and combating fraud – Regulation 2017 amending Implementing Regulation 282/2011 • 18 January 2018 – Proposal re VAT rates, COM(2018)20 – Proposal re SME regimes, COM(2018)21
Definitive VAT regime
Current regime B2B supplies of goods MS A MS B B A Intra-Community supply - 0% Intra-Community acquisition in MS A in MS B
2022 ‘Radical’ change B2B supplies of goods MS A MS B B A Supply of goods by A No taxable event Place of supply: MS B
2022 B2B supplies of goods (1) New place of supply & OSS MS A MS B B A Supply of goods by A No taxable event Place of supply: MS B
2022 B2B supplies of goods (2) Certified Taxable Person MS A MS B B A Supply of goods by A Certified Taxable Person (CTP) Place of supply: MS B Reverse charge to B
Definitive Definitive VAT regime • OSS only à abolishment of CTP • Also OSS for cross-border services à abolishment of reverse charge
2022 Change B2B supplies of goods Impact on business Planning and readiness Impact analysis Obtaining CTP status Managing changed VAT compliance Managing CTP status customers Changes ERP systems Managing Evidence transport One-Stop-Shop goods to other MS
Certified Tax Payer (CTP)
Certified Tax Payer (CTP) Who is he?
Certified Tax Payer (CTP) • Obtaining CTP status – application at level of national tax authorities – proof of compliance with a set of sufficiently harmonized and standardized pre-defined criteria, including: • absence of infringements of tax/customs/criminal law • high level of control of operations and flow of goods • evidence of financial solvency – Established in EU – Mutual recognition MS – Right of appeal
Certified Tax Payer (CTP)
2019 Quick fixes
2019 Quick fixes • Call-off stock simplification • Simplification for chain transactions • Harmonized rules for proof of transport
2019 Quick fixes Call-off stock simplification MS A MS B A B IC supply of goods by A IC acquisition by B Place of supply: MS A Place of acquisition: MS B • Intra-Community supply of goods (and Intra-Community acquisition) at the moment of removal from warehouse in MS B • Instead of transfer of own stock and local supply • Only between CTP’s (both A and B!)
2019 Quick fixes Call-off stock simplification • Harmonization between MS • Certain administrative conditions • What about simplifications not covered under this quick fix (e.g. NL consignment stock rules)?
2019 Quick fixes Simplification for chain transactions MS C MS A MS MS MS MS A C B B C C A Intra-Community supply - 0% physical flow of goods Intra-Community acquisition in MS A, but by whom? in MS C, but by whom? • Current framework: ECJ EuroTyre & Toridas • Simplification in case B arranges the transport • Only between CTP’s (both A and B!)
2019 Quick fixes Simplification for chain transactions • A-B transaction = intra-Community transaction – B arranges the transport – A and B are both CTP – B tells A to which MS the goods are transported – B is not registered in MS A or MS C
2019 Quick fixes Harmonized rules for proof of transport MS A MS B A B Intra-Community acquisition Intra-Community supply - 0% in MS B in MS A • Simplification: presumption of transport outside the MS • 2 options, both requiring 2 items of non-contradictory evidence • Tax authorities may rebutpresumption in case of indications of misuse or abuse by vendor or acquirer
2019 Quick fixes Harmonized rules for proof of transport Proposal Implementing Regulation, COM(2017)568 1. Vendor = transport (or on his behalf) + CTP + 2 items of non-contradictory evidence 2. Acquirer = CTP & vendor has a written statement of transport by acquirer (or on his behalf) + 2 items of non-contradictory evidence
2019 Quick fixes Harmonized rules for proof of transport Accepted items of evidence: a. Document signed by acquirer acknowledging receipt of goods in MS destination b. Documents relating to transport (e.g. CMR / bill of lading / invoice transporter / insurance policy transport) c. Official documents (e.g. notary) confirming arrival of goods d. Receipt confirming storage of goods in MS of destination e. Certificate professional body (e.g. Chamber of Commerce) confirming destination of goods f. Contract or PO vendor - acquirer indicating destination of goods g. Correspondence between parties indicating destination of goods h. VAT return acquirer declaring Intra-Community acquisition
2019 Quick fixes Valid VAT ID number of acquirer required MS A MS B A B Intra-Community acquisition Intra-Community supply - 0% in MS B in MS A
2019 Quick fixes Valid VAT ID number of acquirer required • Valid VAT ID number of acquirer required for application of exemption to intra-Community supplies of goods • Correct & valid VAT ID number also to be included in listing à risk of VAT assessments
Let’s continue the debate!
Authorized Economic Operator Programme Marcel Neggers LL.M. AEO programme manager NL Customs National Customs Office Rotterdam Rotterdam – 22 February 2018
Content • AEO keys facts / general information • AEO criteria / benefits • AEO application procedure • AEO monitoring • Link AEO with Certified Taxable Person (CTP)
AEO programme – key facts • New York 9-11-2001: attacks on WTC US Customs – C-TPAT programme • World Customs Organisation (WCO) SAFE Framework of standards to secure and facilitate global trade (International Certification Systems) • European Union: AEO programme based on EU legislation (Union Customs Code) operational since 1 January 2008 (2018: about 17.000 AEO)
EU AEO Programme – key facts • Open to all international logistic supply chain actors • Recognised in all 28 EU Member States • Unlimited validity, but robust monitoring • Two different types of AEO authorisations: ü AEO for Customs Simplifications (AEOC) ü AEO for Security and Safety (AEOS) requiring the fulfilment of specific criteria and offering different benefits.
AEO Programme - AEO Criteria - 1. Compliance with customs requirements and taxation rules (AEOC and AEOS) • No serious infringements or repeated infringements of customs legislation or tax rules over the last 3 years. • No record of serious criminal offences relating to the economic activity of the applicant. AEO criterion to be fulfilled by: a. the applicant and b. the person in charge of the applicant or exercising control over its management and c. the employee in charge of the applicant’s customs matters.
AEO Programme - AEO Criteria - 1. Compliance with customs requirements and taxation rules (AEOC and AEOS) Examples of serious infringements of: • Customs legislation: – Smuggling, fraud, counterfeiting, infringements related to Intellectual Property Rights (IPR), prohibitions & restrictions. • Taxation rules: – Tax fraud, VAT fraud, offences related to excise duties. • Serious criminal offences related to the economic activity of the applicant: – Bankruptcy fraud, corruption, cybercrime, money laundering, infringements against health or environmental legislation.
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