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

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

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

4. 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

5. 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)

6. 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)

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

8. 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

9. Implementing Regulation proposal
Corrections => new system from 1/1/2021
!Old rules applicable for Q to Q 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

10. DG TAXUD – Unit C1