On October 1st, the preliminary draft laws amending the VAT Act by incorporating simplification measures regarding intra-community transactions, known as “VAT Quick Fixes 2020”, were published.
The objective pursued by the said measures is to achieve a harmonized approach in all Member States to certain cross-border transactions and a simplified, uniform taxation of these transactions, as the different tax authorities are currently not interpreting them in the same way.
Among others, the draft law is intended to simplify call-off stock sales, as well as chain transactions: as a matter of example, the transfer of goods to a warehouse or the premises of a customer in another EU Member State will not be deemed as an intra-community supply and acquisition until the customer takes the goods out of the stock.
Besides, the new measures regulate the material and not formal prerequisite that purchasers who wish to apply for the exemption on intra-community deliveries must have a VAT identification code granted by a Member State other than Spain.
The new rules are expected to enter into force on 1st January 2020.