A Guide to Vat in the Eu: The Single Market Changes 1998-1999 Update

by PricewaterhouseCoopers LLP

• ISBN13: 9789041197498
• ISBN10: 9041197494
• Edition: Revised
• Format: Paperback
• Copyright: 2000-08-01
• Publisher: Kluwer Academic Pub

Table of Contents

Preface	xv
Executive summary	xvi
PART I ANALYSIS OF THE MAIN FEATURES OF THE TRANSITIONAL VAT SYSTEM	1	(56)
Introduction	3	(4)
Scope of the tax (art. 2)	3	(1)
Territorial application (art. 3)	3	(2)
Territory of a Member State	4	(1)
Definition (art. 3 (2))	4	(1)
Excluded territories (art. 3 (3))	4	(1)
Special measures for the Principality of Monaco and the Isle of Man (art. 3 (4))	5	(1)
Community and territory of the Community (art. 3 (1))	5	(1)
Third territory and third country (art. 3 (1))	5	(1)
Taxable persons (art. 4)	5	(2)
Definition	5	(1)
Supplier of new means of transport (art. 4 (3a))	6	(1)
The supply of goods	7	(8)
Definition of a supply of goods (art. 5)	7	(2)
Definition (art. 5 (1))	7	(1)
`Deemed' supplies of goods (art. 5 (5a))	7	(1)
Definition	7	(1)
Transfers not to be considered as deemed supplies	7	(1)
Conditions no longer fulfilled, consequences (art. 5 (5a) (b))	8	(1)
Goods on consignment	8	(1)
Place of supply of goods (art. 8)	9	(2)
Principle (art. 8 (1) (a))	9	(1)
Supplies to passengers (art. 8 (1) (c))	9	(1)
Distance sales (art. 8 (3))	9	(1)
Application of the destination principle (art. 8 (3) (a))	9	(1)
Application of the origin principle (art. 8 (3) (b))	10	(1)
Principle	10	(1)
Option for the Member State to limit the threshold (art. 8 (3) (b) second subparagraph)	10	(1)
Method for the calculation of the thresholds	11	(1)
Option for taxation in accordance with the destination principle (art. 8 (3) (c))	11	(1)
Chargeable event and chargeability of tax	11	(1)
Principle (art. 10 (2))	11	(1)
Derogation for exempt intra--Community supplies (art. 10 (2a) fourth and fifth subparagraphs)	11	(1)
Taxable amount (art. 11 (A) and (C))	12	(1)
Principle	12	(1)
Conversion method (art. 11 (C))	12	(1)
Conversion within the Euro-zone	13	(1)
Exempt (zero-rated) supplies of goods	13	(1)
Exempt (zero-rated) intra-Community supplies (art. 15a (A) (a))	13	(1)
Conditions	13	(1)
Proof	13	(1)
Exempt (zero-rated) deemed intra-Community supplies (art. 15a (A) (d))	13	(1)
Exempt (zero-rated) supplies in warehouses other than customs warehouses (art. 16 (1) (B) (e) and 16 (1) (D) (b))	14	(1)
Intra--Community acquisitions	15	(5)
Definition of an intra--Community acquisition (art. 5a)	15	(2)
Definition (art. 5a (1))	15	(1)
`Deemed' acquisition of goods (art. 5a (2))	15	(1)
Definition	15	(1)
Goods on consignment	15	(1)
Derogation: non-taxable acquisitions	15	(1)
Where the supply within the Member State of the goods acquired is exempt for some specific reasons (art. 2 (6) (a))	16	(1)
Acquisitions not subject to VAT by the acquirer (art. 2 (3) and (6) (b))	16	(1)
Principle	16	(1)
Option for the destination principle	17	(1)
Exclusion for acquisitions of products subject to excise duty (art. 2 (5))	17	(1)
Place of intra--Community acquisitions (art. 8a)	17	(1)
Principle (art. 8a (1))	17	(1)
Deeming provision (art. 8a (2))	17	(1)
Charageable event and chargeability of tax (art. 10 (2a))	18	(1)
Chargeable event	18	(1)
Chargeability of the VAT	18	(1)
Taxable amount (art. 11 (4))	18	(1)
Principle	18	(1)
Conversion method	19	(1)
Exempt intra--Community acquisitions (arts. 15a (B) and 16 (2))	19	(1)
Exempt intra--Community acquisitions in VAT warehouses (art. 16 (1a))	19	(1)
Intra--Community supplies and acquisitions of new means of transport	20	(3)
Definition of new means of transport (art. 2 (7))	20	(1)
Definition of `means of transport'	20	(1)
Definition of `new'	20	(1)
Incidental supply of new means of transport (art. 4 (3a))	21	(1)
Exempt (zero-rated) intra-Community supplies of new means of transport (art. 15a) (A) (b))	21	(1)
Taxable intra-Community acquisitions of new means of transport (art. 2 (4))	21	(2)
Simplification measures for triangulation	23	(4)
Exempt (zero-rated) intra-Community supply by (A) in the Member State of dispatch (art. 15a (A) (a))	23	(1)
Treatment of intra-Community acquisitions by (B) in the Member State of arrival (art. 15a (B) second subparagraph)	24	(1)
Treatment of intra-Community acquisitions by (B) in the Member State where (B) is identified for VAT purposes (art. 8a (2) third subparagraph)	24	(1)
Treatment of the subsequent supplies by (B) to a consignee (C) in the Member State of arrival (art. 21 (1) (a) third subparagraph)	25	(1)
Implementation	26	(1)
Chain transaction (art. 32b)	26	(1)
Imports into the Community/exports from the Community	27	(4)
Imports	27	(2)
Definition (art. 7 (1))	27	(1)
Place of importation (art. 7 (2))	27	(1)
Chargeable event and chargeability of tax (art. 10 (3a))	27	(1)
Taxable amount (art. 11 (B))	28	(1)
Principle	28	(1)
Conversion method (art. 11 (C) (2) first subparagraph)	28	(1)
Exemptions on importation (arts. 14 and 16)	29	(1)
Imports followed by an exempt intra-Community supply (art. 14 (1) (b))	29	(1)
Optional exemptions (art. 16)	29	(1)
Warehousing arrangements other than customs warehouses (art. 16 (1) (A))	29	(1)
Re-exports (art. 16 (2))	29	(1)
Exports	29	(2)
Exemption (zero-rate) for exports (art. 15 (1) and (2))	29	(1)
Exemption for certain services (art. 15 (3))	30	(1)
Provisions regarding the supply of services	31	(4)
Place of supply of services consisting of the intra-Community transport of goods (art. 9 (1) (a), 9 (1) (b) and 9 (2) (b) and 9 (2) (c))	31	(1)
Principal rule	31	(1)
Derogation	31	(1)
Directly linked national freight and ancillary services	31	(1)
Place of supply of the valuation of or work on movable goods	32	(1)
Principal rule	32	(1)
Derogation	32	(1)
Place of supply of services rendered by intermediaries (art. 9 (1) (c))	32	(1)
Principal rule	32	(1)
Derogation	32	(1)
Exemption	32	(1)
Place of supply of telecommunications services (art. 9 (1), 9 (2) (e), 9 (3) (b) and 9 (4))	33	(2)
Provisions applicable until 31 December 1999	33	(1)
Scope	33	(1)
Derogation	33	(1)
Provisions applicable as from 1 January 2000	33	(1)
Definition of telecommunications services (art. 9 (2) (e) new indent)	34	(1)
Place of supply for telecommunications services (art. 9 (2) (e) 9th indent and 9 (4))	34	(1)
Rates (art. 12)	35	(1)
Minimum standard rate (art. 12 (3) (a) first and second subparagraphs)	35	(1)
Reduced rates (art. 12 (3) (a) third subparagraph and art. 12 (3) (b) and art. 28 (b), (c), (d), (e), (f))	35	(1)
Deduction of VAT	36	(2)
Origin and scope of the right to deduct (art. 17)	36	(1)
Rules governing the right to deduct (art. 18 (1) and (3a))	37	(1)
Intra-Community acquisitions (art. 18 (1) (e) and (3a))	37	(1)
Deemed intra-Community acquisitions (art. 18 (1) (c))	37	(1)
The payment of the tax is shifted to the taxable person as customer (art. 18 (1) (d))	37	(1)
Persons liable to pay the tax	38	(4)
Liability for the supply of goods and services	38	(2)
Principal rule (art. 21 (1) (a) first subparagraph)	38	(1)
Taxable person not established in the Member State of supply (art. 21 (1) (a) second subparagraph)	38	(1)
Simplification measures for triangulation (art. 21 (1) (a) third subparagraph)	39	(1)
Provisions in respect of supplies of goods and services arrangements to goods intended to be placed or already covered by a VAT warehousing regime (art. 16 (1) E, second subparagraph)	39	(1)
Provisions in respect of the supply of certain services (art. 21 (1) (b))	39	(1)
Liability for charging VAT on an invoice (art. 21 (1) (c))	40	(1)
Liability for intra-Community acquisitions (art. 21 (1) (d))	40	(1)
Principal rule (art. 21 (1) (d))	40	(1)
Taxable person not established in the Member State (art. 21 (1) (d))	40	(1)
Liability for intra-Community acquisitions in VAT warehouses (art. 16 (1a) and 16 (1) E, second subparagraph)	40	(1)
Joint liability (art. 21 (1) (a), (b) and (d))	41	(1)
Liability for imports (art. 21 (2))	41	(1)
Compliance: requirements for persons liable for payment	42	(9)
Identification number (art. 22 (1))	42	(1)
Reporting requirements (art. 22 (1) (a) and (b))	42	(1)
Identification: registration numbers (art. 22 (1) (c), (d) and (e))	42	(1)
Persons to be identified	42	(1)
Taxable persons entitled to deduction	42	(1)
Derogations	42	(1)
Identification or registration for acquisitions	42	(1)
Composition of the VAT numbers (art. 22 (1) (d) and (e))	43	(1)
Accounting requirements: registers/records (art. 22 (2))	43	(1)
Invoices (art. 22 (3))	44	(1)
Requirement to issue an invoice (art. 22 (3) (a))	44	(1)
Invoice content (art. 22 (3) (b))	44	(1)
Requirement to submit returns (art. 22 (4))	45	(1)
Tax periods and deadlines for filing returns (art. 22 (4) (a))	45	(1)
Content of the return (art. 22 (4) (b) and (c))	45	(1)
Payment of the amount due on the VAT return (art. 22 (5))	46	(1)
Recapitulative statements (art. 22 (6))	46	(3)
Annual recapitulative statement (art. 22 (6) (a))	46	(1)
Recapitulative statement of exempt intra-Community supplies (EC Sales Listing) (art. 22 (6) (b))	46	(1)
Reporting requirements for exempt intra-Community supplies	47	(1)
Reporting requirements for exempt deemed intra-Community supplies (transfers)	47	(1)
Reporting requirements for triangulation	47	(1)
Adjustments (art. 22 (6) (b) fourth subparagraph, second indent)	47	(1)
Derogations (art. 22 (6) (c))	48	(1)
Reporting requirements for exempt intra-Community supplies of new means of transport (art. 22 (6) (d))	48	(1)
Optional statement of intra-Community acquisitions (art. 22 (6) (e))	48	(1)
Other obligations (art. 22 (8))	49	(1)
Option for releasing certain taxable persons from their obligations (art. 22 (9))	49	(1)
Measures regarding the payment of VAT due for intra-Community acquisitions by non-taxable legal persons (art. 22 (10))	49	(1)
Arrangements regarding intra-Community acquisitions of products subject to excise duties and new means of transport (art. 22 (11))	49	(1)
Optional simplification measures regarding the recapitulative statement of intra-Community supplies (art. 22 (12))	49	(2)
Special schemes for small undertakings (art. 24)	51	(1)
Special treatment of second-hand goods, works of art, collectors' items and antiques (art. 26 (a) E)	52	(1)
Tax-free shopping	53	(2)
Optional exemption: principle (art. 32c (1))	53	(1)
Limits for application of the exemption (art. 32c (2))	53	(1)
Duration of the application (art. 32c (1))	54	(1)
Deduction of input VAT (art. 32c (3))	54	(1)
Measures to be taken by the Member States (art. 32c (5))	54	(1)
Miscellaneous	55	(2)
Rates of conversion (art. 31 (2a))	55	(1)
Period of application of the transitional arrangements--effective date of the definitive system (art. 35a)	55	(2)
Content of the provisions	55	(1)
Status on 1 June 1999	55	(2)
PART II COUNTRY CHAPTERS	57	(186)
Country chapters of: Austria	64	(11)
Belgium	75	(15)
Denmark	90	(10)
Finland	100	(12)
France	112	(12)
Germany	124	(10)
Greece	134	(9)
Ireland	143	(13)
Italy	156	(15)
Luxembourg	171	(10)
The Netherlands	181	(13)
Portugal	194	(12)
Spain	206	(14)
Sweden	220	(9)
United Kingdom	229	(14)
PART III APPENDICES	243	(112)
Appendix 1: Integrated text of the Directives	244	(83)
Appendix 2: Thresholds for distance sales	327	(1)
Appendix 3: Thresholds for acquisitions by taxable persons not entitled to VAT deductions, non-taxable legal persons and farmers subject to the flat-rate scheme	328	(1)
Appendix 4: VAT rates in the Member States	329	(1)
Appendix 5: Appointment of a tax representative and/or direct registration of taxable persons, not established in the Member State	330	(1)
Appendix 6: Composition of VAT numbers	331	(1)
Appendix 7: Invoices -- mandatory requirements in the Member States	332	(17)
Appendix 8: Addresses of the Member States' VAT administrations	349	(4)
Appendix 9: Conversion rates of the Member States of the Euro zone	353	(2)
Index	355