Intra-EU trade: tightening of VAT-free conditions of sale

In the territory of the European Union, enterprises carry out most of their trade freely, without customs declaratory formality such as the DAU (Single Administrative Declaration) or border control.

However, Declaration of Trade in Goods (DEB) must be made monthly to the customs administration.

The DEB is a document that summarizes all the introductions and shipments made with the other EU Member States, i.e. the intra-Community import/export operations.

In particular, this declaration makes it possible to trace the flows of goods which generateVAT payment in the Member States of introduction (receiving countries).

Background

The declaration of trade in goods is compulsory if:

• the company has made introductions for a amount greater than or equal to EUR 460 000in the previous calendar year;
• the undertaking shall carry out introductions for an amount equal to or greater than EUR 460 000 during calendar year : in this case, a DEB is payable from the month of crossing.

NB: in the case of dispatch, the DEB is to be completed from the first euro.

An annual calendar with DEB deadlines is published each year (cf. Declarations of Trade in Goods (DEB) and Services (DES): 2019 calendar).

So far, some flexibility has been granted by the administration in terms of the reporting period... this flexibility has now passed!

ATTENTION
According to an official circular*, since 1 January 2019, any non-compliance with the reporting period for the exchange of goods may be fined EUR 1500.

The strengthening of DEB controls is closely linked to the fight against VAT fraud. Moreover, it is in this sense that various regulations will amend Directive 2006/112/EC on the common system of value added tax.

As a reminder,Article 262b(1) of the General Tax Codewhich defines the framework for VAT exemptions in intra-Community trade, must be mentioned on the commercial invoice.

Some exemptions related to intra-Community transactions, Implementing Regulation (EU) 2018/1912, published inOJEU L311, 07/12/2018, says that« Since cross-border VAT fraud is mainly linked to the exemption of intra-Community deliveries, it is necessary to specify certain circumstances in which goods should be considered as having been shipped or transported from the territory of the Member State of delivery. »

In order to justify the dispatch or transport of goods from one Member State to another, the seller will now have to hold:

• If the transport is carried out by him: one main transport document and transport invoice Associate.
  In case of grouping: the transport invoice and the bank document proving the payment of the goods.
• If the transport is carried out by the purchaser : the written declaration by the purchaser** no later than the 10th day of the month following delivery, the main transport document and the bank document proving payment of the goods.

* Circular of 2 January 2019 on the Declaration of Trade in Goods between Member States of the European Union (Ministry of Action and Public Accounts)available to our subscribers on request.

**The buyer's declaration attests that the goods were shipped or transported by him or by a third party on his behalf: the Member State of destination of the goods, as well as various information concerning the purchaser and the goods must also appear (OJEU L311, 07/12/2018).

To go further...

• Contact our experts in global supply chain management to design and manage your import/export and cross-trade scenarios!
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