VAT e-commerce package 2 COM(2018)819 COM(2018)821 VAT Expert Group – 11 February 2019

VAT ecommerce package 2 COM (2018) 819 – Amendments to VAT Directive 2006/112/EC COM (2018) 821 – Amendments to Council Implementing Regulation 282/2011

1. Amendements to the VAT Directive 2006/112/EC COM (2018) 819

VAT Directive proposal No changes to the principles agreed by Council on 5 December 2017 Changes to support the agreed principles and which could not be made in implementing rules Provisions for the application of Article 14a of VAT Directive Adjust certain discrepancies in legal text

VAT Directive proposal Application of Article 14a of the VAT Directive: electronic interfaces (EIs) facilitating certain B2C supplies of goods  deemed to receive and supply the goods Allocation of transport to the B2C transaction  B2B transaction is a supply without transport (Article 36b) B2B supply arising in Art. 14a(2): exempt from VAT (Article 136a); and right to deduct input VAT for the supplier (changes to Article 169b) EI as deemed supplier can use OSS for domestic supplies under Art. 14a(2)  Avoids VAT registration in MSs where underlying supplier has stock & makes domestic supplies (Article 369a(3); Article 369b; Article 369e; Article 369f) Report those domestic supplies under Art. 14a(2) in the OSS return (Article 369g)

VAT Directive proposal Adjustment of discrepancies Update reference in Article 204 to the definition of the non-Union scheme as of 2021 Clarify which MS is the MS of Identification in the Union OSS for non-EU established taxable persons (Article 369a) Align deadline for monthly VAT payment under the special arrangements with the customs rules (Article 369zb)

2. Amendments to Council Implementing Regulation 282/2011 COM (2018) 821

Implementing Regulation proposal When is supplier deemed to intervene indirectly in the dispatch/transport of goods When is this not the case (Art. 5a) Clarifications for Article 14(4) VAT Directive Clarifications for term "facilitate" (Art. 5b) When is an EI considered to facilitate the supply When is it NOT considered to facilitate the supply Provisions to enhance legal certainty for deemed suppliers (Art. 5c) Deemed supplies are presumed to be B2C Not liable for excess VAT when he did not know and could not have known that information obtained from a third party was incorrect Clarifications for when payment is accepted (Art. 41a & 61b) Clarifications for record keeping obligations in Article 242a (Art. 54b & 54c) Implementing rules for deemed supplier provisions

Implementing Regulation proposal Corrections => new system from 1/1/2021 !Old rules applicable for Q4-2017 to Q4-2020 returns (up to beginning 2024) Identification number intermediary ≠ VAT id No. Remove quarantine period in case of voluntary deregistration Deletion of intermediary from OSS registry & consequences for taxable person he represented Update record keeping obligations => name of customer is deleted; add new requirements for goods Updating provisions on functioning of the special schemes to fit the extended OSS (Section 2 of Ch. XI) Align current provisions with extended OSS & IOSS Details on consequences of exclusion from OSS and IOSS Reminder to be sent by MSI when failure to submit records Possibility to register as of 1/10/2020 Other changes

DG TAXUD – Unit C1 E-mail: TAXUD-C1-SECTOR-A@ec.europa.eu